The Elimination of Import Restrictions Will

question 46

Multiple Choice

The elimination of import restrictions will

• A)Alter the mix of output from export industries toward domestic industries.
• B)Redistribute income from import-competing industries to export industries.
• C)Alter the mix of output from export industries to import-competing industries.
• D)Redistribute income from domestic to foreign producers.

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Definitions:

Free Enterprise

An economic system based on private ownership and the freedom of individuals to start and manage their own businesses.

Laissez-Faire Economy

An economic system in which transactions between private parties are free from government intervention such as regulations, privileges, tariffs, and subsidies.

Coordinating Mechanism

A system or process used to organize and harmonize different activities or parties so that they work together efficiently towards a common goal.

Laissez-Faire Economies

Economic systems in which transactions between private parties are free from government intervention such as regulations, privileges, tariffs, and subsidies.