One Argument for Trade Restriction That Focuses on New Industries

question 162

Multiple Choice

One argument for trade restriction that focuses on new industries is that

• A) trade barriers must be used to protect all domestic workers.
• B) tariffs imposed to aid new industries should never be removed.
• C) new industries are usually capable of competing with established rivals.
• D) new industries need to be shielded in their early stages.
• E) trade barriers can be used to enhance national security.

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Definitions:

Underapplied

A situation in which the allocated manufacturing overhead costs are less than the actual overhead costs incurred.

Raw Materials

Basic materials and components that are used in the manufacturing process to produce finished goods.

Journal Entries

Records in accounting that document financial transactions and their impact on the accounts of an organization in a chronological order.

Indirect Materials

are materials used in the production process, but not directly traceable to a finished product, like lubricants for machinery.