What term describes a policy that restricts imports through tariffs and quotas?

• A. Free trade
• B. Protectionism
• C. Mercantilism
• D. Economic isolationism

Answer: (B)

The main idea is a government policy that shields domestic industries by limiting imports. The best term for this is protectionism because it describes using tools like tariffs and quotas specifically to reduce foreign competition. Tariffs add a tax to imported goods, making them more expensive and less attractive compared to domestic products, while quotas set a numerical limit on how much can be imported. Both are classic means of protecting local industries and jobs. Free trade would remove these barriers and encourage imports. Mercantilism is a broader historical framework that sometimes employs protectionist ideas, but it isn’t the label for the policy itself. Economic isolationism refers to a broader stance of avoiding international economic ties, not just restricting imports through tariffs and quotas.