Which of the Following Is a Valid Reason for Protecting

question 25

Multiple Choice

Which of the following is a valid reason for protecting an industry?

• A) Protection penalizes lax environmental standards.
• B) The industry is unable to compete with low-wage foreign competitors.
• C) None of the above reasons is a valid reason for protection.
• D) Protection keeps richer nations from exploiting the workers of poorer countries.

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Definitions:

Production Constraint

A limitation or bottleneck in the production process that restricts output, efficiency, or the utilization of resources.

Profits

The financial gain achieved when the revenues from business operations exceed the expenses, costs, and taxes involved in sustaining the operation.

Opportunity Costs

The value of the best alternative that is foregone when a different option is chosen.

Special Order

A one-time order that is not considered part of the company’s normal ongoing business.