If a nation imposes tariffs and quotas on foreign products, the immediate effect, if no retaliation is immediately imposed by other countries 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 make foreign goods more expensive or limit their availability, encouraging consumers to buy domestic products, which can increase domestic output and employment in the short term.

If a Nation Imposes Tariffs and Quotas on Foreign Products