Restrictions on imports
A) eventually reduce exports, too.
B) enhance economic welfare by encouraging more exports.
C) are the quickest way for a country in recession to start on a path of economic recovery.
D) usually have no long-run effects on an economy.

Question

Quizplus · Accepted Answer

Restrictions on imports can lead to retaliation from other countries, resulting in reduced exports for the country implementing the restrictions. Additionally, restrictions on imports can lead to higher input costs for domestic producers, making them less competitive in the international market and reducing their ability to export. Therefore, restrictions on imports can eventually reduce exports as well.

Restrictions on Imports