Economists Would Tend to Accept Which of the Following Arguments

question 30

Multiple Choice

Economists would tend to accept which of the following arguments in favour of tariffs?

• A)Tariffs are needed to avoid exporting jobs from low-wage countries to high-wage countries.
• B)Tariffs are needed to limit imports and reduce the capital flow from the country.
• C)Tariffs help to reduce inflation by reducing the price of domestic products.
• D)Temporary tariff protection may help to generate an eventual comparative advantage for the protected product.
• E)Tariffs will stimulate the domestic economy.

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Definitions:

Zero-coupon Bond

A bond that does not make periodic interest payments during its life and is instead sold at a deep discount from its face value, with the full face value being paid at maturity.

Yield To Maturity

The cumulative income projected from a bond, provided it is retained till its expiration, factoring in both the interest disbursements and principal reimbursement.

Rate Of Return

The gain or loss on an investment over a specified time period, expressed as a percentage of the investment's cost.

Par Value

The face value of a bond or stock, which is the amount paid back to the bondholder at maturity.