Which of the Following Is True of Import Substitution

question 115

Multiple Choice

Which of the following is true of import substitution?

• A)The government encourages domestic producers to make products which can compete in the international market.
• B)The government takes steps to liberate imports and lift restrictions.
• C)The government takes steps to promote exports and subsidizes export-oriented production.
• D)The government insulates domestic producers by imposing strict tariffs and quotas.
• E)The government focuses on service-oriented imports rather than primary imports.

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Definitions:

Direct Labor

Labor costs that are directly attributed to the production of goods, including wages for workers who manufacture a product or perform a service.

Gross Profit

The difference between sales and the cost of goods sold, representing the profit from trading activities before deduction of overheads and other selling expenses.

First Quarter

This term refers to the first three months of a financial year; specifically, January, February, and March, used in fiscal and calendar year reporting.

Service Provider

A company or organization that offers services to others, such as telecommunications, utilities, or healthcare.