Restricting imports usually leads to
A) a country producing beyond its production possibilities frontier.
B) a country consuming even further beyond its production possibilities frontier.
C) a reduction in exports and employment.
D) a higher per capita level of real consumption.

Question

Quizplus · Accepted Answer

Restricting imports can lead to a reduction in exports and employment because it may result in retaliation from other countries, reducing demand for a country's exports and leading to job losses in export industries. A and B are not accurate as restricting imports may lead to a decrease in a country's overall production and consumption levels. D is not true as restricting imports can lead to higher domestic production and consumption levels, but does not necessarily equate to higher per capita real consumption.

Restricting Imports Usually Leads to