Which of the Following Is NOT a Valid Argument for Protection

question 51

Multiple Choice

Which of the following is NOT a valid argument for protection?

• A) to allow infant industries to survive foreign competition
• B) to prevent dumping by other countries from giving them an unfair advantage over domestic suppliers
• C) to allow senile industries a chance to make heavy investments
• D) to prevent the domestic market being dominated by a foreign monopoly

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Definitions:

Fixed Manufacturing Overhead

Costs in manufacturing that do not vary with the level of production, such as rent, depreciation, and salaries.

Inventories

Assets held for sale in the ordinary course of business, in the process of production for such sale, or in the form of materials to be consumed in the production process.

Deferred

Refers to expenses or income that has been incurred but not yet recognized in the accounts, to be recognized in a future period.

Released

Refers to a product or information that has been made available to the public or to a specific group.