The Following Are Commonly Used Arguments for Protection Against Imports

question 95

Multiple Choice

The following are commonly used arguments for protection against imports, except

• A)self-sufficiency and diversification-for-stability.
• B)protection against dumping.
• C)infant industry protection.
• D)price and profit maintenance.

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Definitions:

Deadweight Loss

A loss of economic efficiency that can occur when the free market equilibrium for a good or a service is not achieved, leading to a mismatch between supply and demand.

Consumer Surplus

The discrepancy between what consumers are prepared and capable of spending for a product or service and the actual amount they end up paying.

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive.

Tax Revenues

Income that the government receives from taxation, which can be levied on individuals, corporations, and other legal entities.