Which of the Following Is Not True About Protectionism

question 62

Multiple Choice

Which of the following is not true about protectionism?

• A) It reduces competition.
• B) It may cause friction between nations.
• C) It increases prices to consumers.
• D) Tariffs and quotas protect domestic firms and jobs.
• E) It is a revenue source for the provincial governments in Canada.

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Definitions:

Par Value

Par Value is the face value of a bond or a stock as stated by the issuing company, which may not reflect the actual market value.

Market Value

The current price at which an asset or service can be bought or sold in a market.

Own Name

The legal identification used by an individual or entity for conducting transactions or signing contracts.

Paid-In Capital

The amount of money a company has received from shareholders in exchange for stock.