Arguments for and Against Protectionism Include All of the Following

question 31

Multiple Choice

Arguments for and against protectionism include all of the following except

• A) tariffs and quotas protect domestic firms and jobs.
• B) tariffs and quotas reduce competition and drive up prices.
• C) tariffs and quotas adversely affect the exchange rate.
• D) that while some jobs and industries would be protected with tariffs and quotas, all countries would be better off without them as jobs in other industries would expand.
• E) tariffs and quotas are in response to actions of other governments.

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Definitions:

Stock Split

A corporate action where a company divides its existing shares into multiple shares to increase the number of shares outstanding.

Cash Dividend

A payment made out of a company's profits to its shareholders, as determined by the company's board of directors, usually provided in cash.

Regular Dividend

A dividend paid by a company to its shareholders at regular intervals, often quarterly, semi-annually, or annually.

Repurchase Stock

The act of a company buying back its own shares from the marketplace, which can affect shareholder value and earnings per share.