Which of the Following Are Reasons Economists Consider Valid for Trade

question 52

Multiple Choice

Which of the following are reasons economists consider valid for trade protection? I.Protection penalizes countries that have weak environmental standards.
II.Protection limits dumping of low-wage jobs into the domestic economy.
III.Protection prevents low-wage jobs in foreign countries from lowering wages in Canada.

• A)I and II
• B)II and III
• C)I,II,and III
• D)I and III
• E)None of the above

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Definitions:

Annual Dividend

The total amount of dividend payments a shareholder receives from a stock or investment in a year.

Market Price

An indication of how much a particular good, security, or commodity is valued in a marketplace at any given time.

Cost of Equity

The return that investors expect for their investment in a company's equity, representing the compensation for the risk taken.

Market Risk Premium

The excess return that investors require from an investment in the stock market over a risk-free rate. This premium compensates investors for taking on the higher risk of investing in stocks.