The National Defense Argument for Trade Restriction Holds That

question 108

Multiple Choice

The national defense argument for trade restriction holds that

• A) the president should have the authority to erect trade barriers in case of war or national emergency.
• B) free trade is a danger to the national defense because open borders increase the likelihood that spies will get into the country.
• C) a country should produce those goods necessary for national defense purposes even if it doesn't have a comparative advantage in them.
• D) if your enemy erects trade restrictions,so should you.

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Definitions:

Securities Exchange Commission

A U.S. federal agency that oversees the securities markets and protects investors by maintaining fair, orderly, and efficient markets.

Social Security System

A governmental program designed to provide financial assistance to individuals during retirement, and in some cases, upon disability or to surviving family members upon a worker's death.

Transcontinental Railroad

A contiguous network of railroad trackage that crosses a continental landmass with terminals at different seas or ocean borders.

Protective Tariffs

Taxes imposed on imported goods to protect domestic industries from foreign competition by increasing the price of imported goods.