When a government limits its country’s imports and encourages exports, its helps to create which of the following?

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BlackTom AI · Accepted Answer

The question asks about the outcome of a government pursuing import limits while promoting exports. 
Option 1: a favorable balance of trade. This is the broad, correct consequence, because restricting imports reduces outflows while boosting exports increases inflows, together improving the net trade position between a country’s purchases and sales with the rest of the world.
Option 2: a buy-national regulation. While many protectionist measures aim to encourage domestic purchases, the specific effect described in the prompt targets the overall trade balance rather than prescribing a policy to mandate buying domestically. This option states a policy instrument rather than the resulting economic outcome.
Option 3: a favorable trade surplus. A trade surplus is a type of favorable balance of trade, i.e., positive net exports. However, the question describes the outcome in terms of balance of trade in general, not exclusively the surplus form. Saying “trade surplus” is more specific; the result could be a surplus but is not guaranteed to be labeled strictly that way in all contexts. This makes it a less precise answer than Option 1.
Option 4: a nontariff barrier. Nontariff barriers are tools like quotas, licensing, or standards that restrict imports. The described government actions (limiting imports and promoting exports) are aimed at improving the trade balance, not creating a barrier. Therefore this option describes a different mechanism, not the outcome.
Thus, evaluating each choice, the statement that best captures the overall result of import limitation and export promotion is that it leads to a favorable balance of trade.

2025SU BSN 100 01 GRADED Quiz: Chapter03

When a government limits its country’s imports and encourages exports, its helps to create which of the following?

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