Which of the Following Is NOT a Way in Which

question 29

Multiple Choice

Which of the following is NOT a way in which the safeguard policy is better than antidumping policies?

• A)Firms and governments do not need to show that foreign exporters have done anything unfair.
• B)There is pressure for import-competing firms to adjust their production in order to be more competitive with foreign exporters.
• C)The interests of consumers can be disregarded since they do not play a role in determining whether to invoke a safeguard policy.
• D)The protection provided to the import competing sector is explicitly temporary.

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Definitions:

Population Decline

A reduction in the number of people in a particular area, which could be caused by factors like low birth rates, high death rates, migration, or disease.

Average Annual Rate

The average yearly interest rate on investments or loans, taking into account the effect of compounding.

Strip Bond

A debt security that has had its principal and coupon payments separated, or "stripped", to be sold individually.

Nominal Rate

The nominal rate is the stated interest rate of a loan or investment, not accounting for compounding or inflation.