When an Imported Good Has Restrictions Placed on It That

question 107

Multiple Choice

When an imported good has restrictions placed on it that limits the amount that can be imported and as a result the price of the good increases, the demand curve for that good will

• A)shift rightward.
• B)shift leftward.
• C)become steeper.
• D)be unaffected.

---

Definitions:

Economic Theories

Conceptual frameworks explaining how economies function and the relationships between different economic agents and factors.

Economic Policy

Strategies and decisions by a government or organization aimed at achieving specific economic aims, such as controlling inflation, reducing unemployment, or promoting growth.

Capital Goods

Assets used by businesses to produce goods and services, such as machinery, buildings, and equipment.

Investment

Expenditures that increase the volume of physical capital (roads, factories, wireless networks) and intangible ideas (formulas, processes, algorithms) that help to produce goods and services. Also known as economic investment. Not to be confused with financial investment.