If a nation imposes tariffs and quotas on foreign products, the immediate effect will be to
A)reduce the rate of domestic inflation.
B)increase efficiency in the world economy.
C)increase domestic output and employment.
D)reduce domestic output and employment.

Question

Quizplus · Accepted Answer

Tariffs and quotas on foreign products make imported goods more expensive or limited, encouraging consumers to buy domestic products, which can increase domestic output and employment.

If a Nation Imposes Tariffs and Quotas on Foreign Products