A Common False Argument for Using Tariffs to Maximize National

question 64

Multiple Choice

A common false argument for using tariffs to maximize national income and raise domestic living standards is to _.

• A)encourage learning by doing
• B)exploit economies of scale
• C)create a strategic trade advantage
• D)alter the terms of trade
• E)protect declining industries

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Definitions:

Ownership Transfer

The process by which ownership rights of a property or business are transferred from one party to another.

Unlimited Liability

Unlimited Liability means that the owners of a business are personally responsible for all of the debts of the business, without any limit on the amount for which they might be liable.