Countries That Restrict Foreign Trade Are Likely to

question 25

Multiple Choice

Countries that restrict foreign trade are likely to

• A)forgo the additional surplus that trade allows,but will probably enjoy economies of scale.
• B)forgo the additional surplus that trade allows,but will be compensated by a higher rate of technological change.
• C)forgo the additional surplus that trade allows,but will have a lower rate of unemployment.
• D)have more firms with domestic market power.

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Definitions:

Withdrawals

Sums of money taken out from an account, fund, or deposit by the account holder.

Investment

Investment refers to the action of allocating resources, usually money, with the expectation of generating an income or profit.

Compounded Quarterly

A repetitive method of calculating interest where the interest is calculated and added to the principal every three months, leading to an increase in the amount of interest earned over time.

Regular Investment

An investment strategy involving the consistent investment of a fixed amount of money at regular intervals, regardless of market conditions.