Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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how can tariffs encourage domestic production growth?
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Introduction
Trade restrictions are any of the many policy tools that the government uses to limit the volume of imports into the nation. Trade limitations include levying tariffs and putting a cap on the amount of a certain good that can be imported. Tariffs are a kind of tax that is applied to the entry of a good into the market; they increase the cost of imports and discourage consumers from purchasing them. Quotas are characterised as quantitative constraints that place limits on the quantity of a specific good that may be imported into a nation.
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