18. What is the immediate effect when a country utilizes quotas and tariffs on i

Question

18. What is the immediate effect when a country utilizes quotas and tariffs on imported goods & services? A. It would result in a higher rate of employment and a greater amount of domestic production. B. It would result in a stronger economic level of allocative and productive efficiency. C. It would result in a lower amount of employment as well as the level of inflation. D. It would result in lower domestic output but lower unemployment. $200 180 -160 140 O120 O 100 a 60 S 40 0 20 $20 40 6 80 100 120 140 160 180 200 GDP (Billions) COLLEGE RULED SUBJECT

Explanation / Answer

18. A. It would result in a higher rate of employment and a greater amount of domestic production.

When the quota is levied on the imports then the consumers' demand for that product declines and they turn to domestic prodcuts.

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