Import Substitution Policies Make Use Of

question 28

Multiple Choice

Import substitution policies make use of:

• A) Tariffs that discourage goods from entering a country
• B) Quotas applied to goods that are shipped abroad
• C) Production subsidies granted to industries with comparative advantages
• D) Tax breaks granted to industries with comparative advantages

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Definitions:

Compulsory Retirement

The mandatory cessation of employment for individuals once they reach a certain age set by an employer or the government.

Income Program

A government or institutional initiative designed to provide monetary assistance to individuals or families in need.

Forced-Savings Program

A government or employer initiative requiring individuals to save a portion of their income to foster economic stability or for future use.

Payroll Tax

A payroll tax is a tax imposed on both employers and employees; it is based on wages that employers pay their staff.