Which of the Following Is the Most Accurate Statement

question 503

Multiple Choice

Which of the following is the most accurate statement?

• A)The one argument for restricting trade that almost all economists accept as valid is the infant-industry argument.
• B)Almost all economists insist that it is never appropriate to protect "key" industries, even when there are legitimate concerns about national security.
• C)The idea that one nation might want to threaten another nation with a trade restriction is associated with the protection-as-a-bargaining-chip argument for restricting trade.
• D)The protection-as-a-bargaining-chip argument for restricting trade is also known as the infant-industry argument.

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Definitions:

Defense Spending

Spending by the government on military and defense activities, covering wages, machinery, research, and innovation.

Federal Government Spending

Expenditures by the national government on goods, services, and programs, including defense, education, and social security.

Foreign Aid

Financial or material assistance given by one country to another for relief, development projects, or economic stabilization.

Social Security Tax

A tax imposed on employers and employees alike to finance the Social Security program, offering benefits for retirement, disability, and survivors.