What Is One of the Major Shortcomings of Using Tariffs

question 105

Multiple Choice

What is one of the major shortcomings of using tariffs or quotas to "save American jobs"?

• A)Trade barriers protect the development of new technology, but the new technology eliminates jobs.
• B)Import restrictions alter the composition of domestic employment, but they have minimal effect on the overall level of domestic employment.
• C)The volume of trade with other nations is limited to a few industries, so trade restrictions would not increase national employment.
• D)Major American firms have produced many products in other countries and would not hire more domestic labor when trade barriers are imposed.

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Definitions:

Wages

Payments to employees for their labor or services, typically calculated on an hourly, daily, or piecework basis and paid on a regular schedule.

Wait Staff

Employees who serve customers in establishments like restaurants, often receiving wages plus tips.

Direct Expense

Costs that can be directly attributed to the production of goods or provision of services, such as materials and labor.

Wages

Payments made to employees for their labor or services, typically on an hourly, daily, or per-task basis.