"A Tariff Should Be Imposed on Chinese Shirts Because They

question 185

Multiple Choice

"A tariff should be imposed on Chinese shirts because they are being sold in the United States below their cost of production." Which argument for trade barriers is used in this example?

• A) low foreign wages
• B) infant industry
• C) antidumping
• D) national defense

---

Definitions:

Noncontrolling Interest

A minority stake in a company that is not enough to exert control over its operations, often less than 50% of the voting shares.

Cumulative Dividend

A type of dividend that accumulates if not paid in one period and must be satisfied before dividends can be distributed to common shareholders.

Preferred Stock

A class of ownership in a corporation with a fixed dividend payout, which takes precedence over common stock dividends.

Consolidated Net Income

The total net income of a parent company and its subsidiaries, after intercompany transactions have been eliminated.