Which of the Following Is a Partially Valid Economic Argument

question 65

Multiple Choice

Which of the following is a partially valid economic argument for restricting free trade?

• A) Restrictions on foreign trade will increase employment and permanently reduce unemployment.
• B) Infant industries may need temporary protection to develop and gain productive efficiency.
• C) A nation needs to protect its national defense; hence, it should restrict some products that threaten an industry considered vital to its defense.
• D) Both b and c are correct.

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Definitions:

Job Order Costing

An accounting method used to track costs, revenue, and profitability of individual jobs or projects.

Direct Labor

The expenditure on the pay of staff members directly participating in the production of goods or delivery of services.

Production Department

A division within a manufacturing company responsible for the actual production of goods.

Prior Department

Refers to the earlier stage or department in a production process or organizational structure that precedes the current focus point.