The practice of imposing import restrictions to protect a newly developing domestic economy typically results in:
A)a rapid improvement in the standard of living.
B)expanded trade relations with other nations.
C)lower prices of domestic products.
D)allocation of resources away from the primary products.
E)greater cost efficiency in domestic production.

Question

Quizplus · Accepted Answer

Imposing import restrictions typically leads to the allocation of resources away from primary products because the domestic economy is focused on developing and protecting its own industries. This can lead to a decrease in the production of primary products and a potential shift towards producing more manufactured or finished goods. The other options (A, B, C, and E) are unlikely results of import restrictions.

The Practice of Imposing Import Restrictions to Protect a Newly