Which of the following statements is used to justify protectionism?
A) Free trade leads to higher prices for imported goods.
B) Trade restrictions are not necessary to protect new firms since they can gain experience and become more productive without protection.
C) A country should not rely on other countries for goods that are critical to its national defense.
D) Free trade increases employment by protecting domestic firms.
C
You might also like to view...
The U.S. financial system is a(n) __________ system
A) markets-oriented B) angel financing C) banking-oriented D) loan committee
Which group came out of World War I (1914–18) better off?
(a) Industrial and agricultural workers (b) Creditors (c) Individuals depending on investment (d) People living on fixed incomes
When a bank's loans are written off, it means that the bank's:
A. Reserves are reduced, while its debt increases B. Reserves rise along with its debt C. Reserves fall along with its debt D. Reserves shrink, whereas its debt remains the same
If average product is increasing, then marginal product
A. cannot be decreasing. B. must be increasing. C. must be greater than average product. D. must be less than average product. E. both a and c