Tariffs Are NOT Defended on the Grounds That They

question 1

Multiple Choice

Tariffs are NOT defended on the grounds that they

• A) improve the terms of trade of foreign nations.
• B) protect jobs and reduce unemployment.
• C) promote growth and development of young industries.
• D) prevent over-dependence of a country on only a few industries.
• E) protect domestic producers from foreign low prices.

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Definitions:

Treasury Bills

Short-term government securities with maturities ranging from a few days to 52 weeks, sold at a discount from their face value.

Intrinsic Value

The inherent or true value of an asset, investment, or company, based on underlying perceptions of its worth.

January Call

An options contract that gives the holder the right to buy the underlying asset at a specified price within January.

Market Value

The current price at which an asset or service can be bought or sold in the open market.