"Tariffs are necessary for reasons of national security." Discuss the validity of this statement
It is argued that tariffs are a means of preventing a nation from becoming too dependent on foreign suppliers of goods vital to national security. The national security argument is usually not valid. If a nation's own resources are depletable, tariff-imposed reliance on domestic supplies will hasten depletion of domestic reserves, making the country even more dependent on imports in the future.
You might also like to view...
What was suggested by Keynes to move the economy out of a depressed state?
A. The invisible hand B. The price mechanism C. Monetary and fiscal policy D. Zero government intervention
While studying with your friend, your friend states, "Our leisure time increases GDP but lowers our standard of living because it reduces the amount of goods and services we can consume." Is your friend's statement correct?
What will be an ideal response?
To avoid the winners curse
a. Bid as if you have estimated the valuation higher than any other bidder b. Bid as if you have estimated the valuation highest c. Bid as if you are the smartest of all the bidders d. Bid as if everyone else has a terrible estimate of the value of the product
Which of the following would be included in Gross National Product (GNP) but not in Gross Domestic Product (GDP)
What will be an ideal response?