Over the Long Run,protecting a Domestic Industry Using a High

question 45

Multiple Choice

Over the long run,protecting a domestic industry using a high tariff is likely to ________ new products and production methods,thus making it ________ to compete in the global marketplace.

• A)encourage it to develop; less able
• B)encourage it to develop; more able
• C)discourage it from developing; less able
• D)discourage it from developing; more able
• E)discourage it from developing; more focused on investing in its ability

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Definitions:

Consistent Dividends

Regular and predictable payments made by a company to its shareholders out of its profits.

Horizontal Analysis

A financial analysis technique that compares line items in financial statements over a period, to identify trends and changes.

Base Year Amount

A reference figure used in economic and financial analysis, representing a specific year's data against which other years' data are compared.