Which of the Following Is TRUE About the Economic Policy

question 5

Multiple Choice

Which of the following is TRUE about the economic policy of "protectionism"?

• A) It raises the prices of foreign goods in domestic markets.
• B) It restricts competitive forces in domestic markets.
• C) It can be achieved through quotas and tariffs.
• D) All of the statements are correct.

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Definitions:

Optimal Choice

The most efficient allocation of resources or decision making that maximizes benefit or utility for an individual or entity.

Twizzlers

A brand of fruit-flavored candy in the form of twisted ropes, known for its chewy texture.

Normal Good

A good whose demand increases when consumer income rises and decreases when consumer income falls, ceteris paribus.

Consumer

A person or collective that buys products or services for their own consumption and not for making or selling them.