Lessening restrictions on imports usually leads to
A)a country producing at the interior of its production possibilities frontier.
B)a country consuming even further beyond its production possibilities frontier.
C)an increase in exports and employment.
D)a lower per capita level of real consumption.

Question

Quizplus · Accepted Answer

When restrictions on imports are lessened, it becomes easier for a country to export its goods to other countries, which increases the demand for those goods and can lead to an increase in employment. This can also lead to specialization in certain industries, which can increase efficiency and output. It is not necessarily true that this will result in a country producing at the interior of its production possibilities frontier or consuming beyond it, and it may not necessarily lead to a lower per capita level of real consumption.

Lessening Restrictions on Imports Usually Leads to