Which of the Following Is NOT a Major Argument for Restricting

question 186

Multiple Choice

Which of the following is NOT a major argument for restricting international trade?

• A) the promotion of dumping in America
• B) the national security argument
• C) the infant industry argument
• D) the prevention of dumping argument
• E) saves U.S. jobs argument

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Definitions:

Shortage

A situation where the demand for a product exceeds its supply at a specific price.

Quota Rent

The economic rent a producer earns from the difference between the market price of a good and its supply price due to a quota limit.

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded.

Quota Price

The cost associated with acquiring a quota, which is a government-imposed limit on the quantity of a good that can be imported or exported.