If Policymakers Impose Import Restrictions on Automobiles, the Canadian Trade

question 114

True/False

If policymakers impose import restrictions on automobiles, the Canadian trade deficit would shrink.

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Definitions:

Nonprice Ration

Distributing or allocating goods based on criteria other than price, such as need or merit.

Short Run

A period in which at least one input (such as plant size) is fixed, and only the variable inputs can be adjusted.

Price System

An economic mechanism that uses prices arising from supply and demand interactions to communicate information to help guide the allocation of resources.

Scarce Goods

Goods that are limited in supply in comparison to their demand, necessitating allocation mechanisms.