Which measures. taken by a government would be intended to raise the price of imports ?
Correct answer: D. Tariffs
- A. Embargoes
- B. Foreign exchange controls
- C. Quotas
- D. Tariffs
Explanation
A tariff is a tax on imports, and the added cost normally raises their domestic price. Quotas restrict quantity, while embargoes prohibit trade rather than directly setting a higher price.
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The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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