Figure 7-3
-box with the "?" in Figure 7-3 above leads to which of the following as a result of the imposition of tariffs and quotas based on protectionist policies of a country?
A) an increase in world trade
B) a decrease in world trade
C) a limit on exports
D) a limit on imports
E) countertrade

Question

Figure 7-3
-box with the "?" in Figure 7-3 above leads to which of the following as a result of the imposition of tariffs and quotas based on protectionist policies of a country?
A) an increase in world trade 
B) a decrease in world trade 
C) a limit on exports 
D) a limit on imports 
E) countertrade

Quizplus · Accepted Answer

Imposition of tariffs and quotas restrict international trade, leading to a decrease in world trade. Tariffs are taxes imposed on imported goods, making them more expensive and less competitive with domestically produced goods. Quotas limit the amount of goods that can be imported, creating scarcity and higher prices. Both policies are protectionist measures taken by a country to shield their domestic industries from foreign competition but limit trade flows. Therefore, choice B is the best answer.

Figure 7-3 -Box with the "?" in Figure 7-3 Above Leads to Leads