An Argument Supporting Tariff or Quota Protection for an Industry

question 34

Multiple Choice

An argument supporting tariff or quota protection for an industry is that such protection

• A) is necessary to lower domestic rates of inflation by reducing spending.
• B) enables a nation to have both the goods and the money.
• C) keeps foreigners from benefiting at our expense.
• D) helps to equalize production costs between nations to the benefit of all countries.
• E) can promote industrial diversification and prevent the nation from becoming too dependent on a few industries.