Protectionism Involves Countries Doing All of the Following EXCEPT

question 18

Multiple Choice

Protectionism involves countries doing all of the following EXCEPT

• A) levying tariffs against firms outside the country.
• B) imposing taxes on firms outside the country.
• C) imposing regulations on firms outside the country.
• D) restricting imports from firms outside the country.
• E) liberalizing restrictions on the import of foreign goods.

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Definitions:

Producer Surplus

The difference between the amount producers are willing to accept for a good or service and the actual amount they receive, due to higher market prices.

Tax

A compulsory financial charge or levy imposed by a governmental organization in order to fund various public expenditures.

Price Elasticities

The responsiveness of the quantity demanded or supplied of a good to a change in its price.

Excise Tax

A tax charged on specific goods and services, such as tobacco and gasoline, intended to reduce their consumption or raise revenue.