The National Defense Argument for Trade Protectionism Holds That

question 121

Multiple Choice

The national defense argument for trade protectionism holds that

• A) what is good for business is good for the country.
• B) what is good for consumers is good for the country.
• C) consumers' surplus rises by more than producers' surplus falls.
• D) producers' surplus rises by more than consumers' surplus falls.
• E) none of the above

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Definitions:

Lower-of-Cost-or-Market

An accounting principle that mandates inventory be recorded at the lower between its historical cost and current market value.

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time.

Inventory Quantity

The amount of merchandise, raw materials, work-in-progress, and finished goods that a company holds at any given point in time.

Days' Sales

A financial metric that calculates the average time it takes for a company to convert its inventory into sales.