Which of the Following Statements Is True About the Alleged

question 343

Multiple Choice

Which of the following statements is true about the alleged benefits and adverse effects of trade barriers?

• A)The alleged benefits like "saved jobs" are limited to a narrow sector of the economy and clearly seen by the general public, while the adverse effects tend to be obscure and dispersed.
• B)The general public does not have much interest in trade and trade barriers because their effects are very small.
• C)The alleged benefits of trade barriers tend to be spread over the whole economy, while their adverse effects are narrow and concentrated on a small sector.
• D)The U.S. does not really have any significant trade barriers. That's why there is not much debate about them.

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Definitions:

CCA Class

Stands for Capital Cost Allowance Class, which is a categorization used in Canadian tax law for the purpose of calculating depreciation for tax purposes.

Borrowed Money

Funds that are loaned to an individual or business with an obligation to repay the amount plus interest.

Operating Lease

A lease agreement allowing the use of an asset without ownership, typically involving shorter-term rentals.

Residual Value

The estimated value that an asset will have at the end of its useful life.