"Protection" Is Designed to Help

question 101

Multiple Choice

"Protection" is designed to help

• A)firms whose relative inefficiency does not permit successful competition with imports.
• B)workers who have very high productivity, and cannot survive against low-paid foreign workers.
• C)government that needs revenue from tariffs and quotas to cover government spending.
• D)firms that are highly efficient and cannot survive against low-price foreign imports.

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Definitions:

Long Run

A period in which all factors of production and costs are variable, allowing firms to adjust all inputs as needed.

Perfectly Elastic

A demand situation where the quantity demanded changes infinitely in response to any change in price.

Equilibrium Quantity

The quantity of goods or services supplied and demanded at the equilibrium price, where demand and supply are equal.

Equilibrium Price

The price at which the quantity of a product offered is equal to the quantity of the product in demand.