A Common Argument for the Use of Tariffs (For a Large

question 79

Multiple Choice

A common argument for the use of tariffs (for a large economy) when the objective is to maximize a country's national income is to

• A)improve the country's terms of trade.
• B)subject infant industries to the discipline of the market.
• C)enjoy the advantages of diversification.
• D)prevent learning-by-doing by potential trade partners.
• E)increase the prices of domestic exports.