Managed Trade Is

question 29

Multiple Choice

Managed trade is:

• A) A principle under which a government sets trade goals for an industry and then uses a system of government incentives and controls to guide trade toward those goals.
• B) Illegal under U.S. law.
• C) Used when arbitrators are called in to settle a trade dispute.
• D) A set of laws passed by the U.S. Congress in 1994 to protect the U.S. semiconductor industry from Japanese imports.

---

Definitions:

Government Purchases

Expenditures by the government sector for goods and services that are consumed within the current period.

Closed Economy

An economic system that does not interact with other economies in terms of international trade or financial transactions.

Public Saving

The difference between tax revenues and government expenditures, typically representing the amount of surplus funds the government has.

Closed Economy

An economic system that does not engage in international trade, instead relying on its own internal markets for goods and services.