Of the Many Arguments in Favor of Tariffs,the One That

question 6

Multiple Choice

Of the many arguments in favor of tariffs,the one that has enjoyed significant economic justification has been the

• A) cheap foreign labor argument.
• B) infant industry argument.
• C) even playing field argument.
• D) balance of payments argument.
• E) domestic living standard argument.

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Definitions:

Crude Quantity Theory

A simplified version of the quantity theory of money suggesting that an increase in money supply leads to a proportional increase in prices.

M

A symbol often representing money supply in economic discussions, including various measures like M1, M2, and M3.

Q

Quantity, frequently used in economic equations and discussions to denote the amount of goods produced or consumed.

PQ

The product of price (P) and quantity (Q), often used in economics to calculate total revenue or expenditure.