How Can the Relative Inefficiency of Domestic Industries Be Addressed

question 31

Multiple Choice

How can the relative inefficiency of domestic industries be addressed?

• A) those injured may be compensated under the Reciprocal Trade Agreement Act
• B) those injured may be compensated under the Trade Adjustment Assistance Act
• C) relief can be granted in the form of permanent tariffs and the renewal of previously granted trade concessions
• D) protection is provided by stimulating imports

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Definitions:

Purchased New Cars

The act of buying vehicles from the manufacturer or dealer that have not previously been owned or used.

Net Present Value

Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment or project, calculated by subtracting the present value of cash outflows from the present value of cash inflows over a period.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual rate, influencing savings and borrowing costs.

Saving

Current income that is not spent on consumption goods. Saving makes it possible for resources to be devoted to investments (like the making of tractors or other equipment used in production).