Question

Suppose a country increases trade restrictions. This country would be pursuing a Select one:

a. inward policy, which most economists believe has beneficial effects on the economy.
b. inward policy, which most economists believe has adverse effects on the economy.
c. outward policy, which most economists believe has adverse effects on the economy.
d. outward policy, which most economists believe has beneficial effects on the economy.

Answer 1

An increase in trade restrictions by a country leads to an inward policy, which is generally believed by economists to have adverse effects on the economy, resulting in inefficiencies and higher prices.

c) ∠a + ∠c = 180 degrees

Step-by-step explanation:

When a country increases trade restrictions, such as implementing tariffs or quotas, it is pursuing an inward policy. The consensus among most economists is that an inward policy has adverse effects on the economy. This is because protectionism can lead to a reduction in trade, causing resources to be used less efficiently, leading to higher prices for consumers, and potential retaliation from other countries.

It can also result in the faster depletion of domestic resources since imports are restricted, and may hinder the benefits that come with international competition and innovation.