A Possible Reason a Nation Might Impose a Restrictive Policy

question 82

Multiple Choice

A possible reason a nation might impose a restrictive policy such as a tariff is to

• A) help domestic firms increase market share relative to their foreign competition.
• B) increase the welfare of domestic consumers.
• C) increase the level of imports.
• D) encourage specialization in the good in which the nation has a comparative advantage.
• E) give consumers more foreign-made options.

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Definitions:

P(A|B)

The chance that event A will occur, assuming event B has occurred, indicative of a conditional probability.

P(B)

The probability of occurrence of event B in a statistical experiment.

P(A And B)

The likelihood that events A and B will happen simultaneously.

Independent Events

Two or more events are independent if the occurrence of one does not affect the probability of the other(s).