A US Trade Policy That Restricts the Sale of Foreign Goods

question 146

Multiple Choice

A U.S. trade policy that restricts the sale of foreign goods in the U.S. market will

• A) reduce the demand for U.S. export goods since foreigners will be less able to buy our goods if they cannot sell to us.
• B) benefit producers in industries that export goods.
• C) increase the nation's income since it protects domestic jobs.
• D) enhance economic efficiency by allocating more resources to the areas of their greatest comparative advantage.

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Definitions:

Daniel Kahneman

A renowned psychologist and economist known for his work in the field of behavioral economics, particularly his research on decision-making and risk-taking.

Neoclassical Economics

An economic theory that focuses on how supply and demand balance to allocate resources efficiently in markets.

Behavioral Economics

A field of study that analyzes how psychological, cognitive, emotional, cultural, and social factors affect economic decision-making processes.

Rational Decisions

Choices made by individuals or entities based on logical assessment and comparison of the costs and benefits associated with different alternatives.