If the Government Imposes or Increases Tariffs or Quotas on Imports

question 18

Multiple Choice

If the government imposes or increases tariffs or quotas on imports, then:

• A)real GDP will decrease.
• B)the real current account balance rises.
• C)net domestic investment will fall.
• D)all of the above.

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Definitions:

Fair Allocations

In economics and game theory, it refers to the distribution of resources or goods among participants in such a way that the allocation is considered equitable according to certain criteria.

Apples

A type of fruit that is grown on apple trees and comes in several varieties differing in sweetness, color, and size.

Oranges

A citrus fruit rich in vitamin C, cultivated and consumed worldwide, both fresh and as juice.

Utility Functions

Formulations representing a consumer's preference, measuring the relative satisfaction from consuming different bundles of goods.