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:

Industry Average Turnover

A measure comparing a company's sales or revenues relative to the average of its industry, indicating how efficiently a company is utilizing its assets.

Year Ended Sales

refers to the total revenue a company generates from sales activities during a fiscal year before any expenses are subtracted.

Receivable Averages

A metric that calculates the average amount of accounts receivable over a certain period to assess a company's efficiency in collecting money owed.

Interest Revenue

The income earned from lending money or investing in interest-bearing assets.