Which of the Following Are Reasons Economists Consider Valid for Trade

question 77

Multiple Choice

Which of the following are reasons economists consider valid for trade protection?
I. Protection penalizes countries that have weak environmental standards.
II. Protection limits dumping of low-wage jobs into the domestic economy.
III. Protection prevents low-wage jobs in foreign countries from lowering wages in the United States.

• A) II and III
• B) I and II
• C) I, II, and III
• D) none of the above

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Definitions:

Monopolistically Competitive

A market structure characterized by many firms selling products that are similar but not identical, allowing for some degree of market power in setting prices.

Automobile Production

The process and industry involved in the manufacturing and assembly of motor vehicles.

Corn Farming

The agricultural practice of cultivating corn or maize, used for various purposes including food, feed, and biofuel.

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for some degree of market power.