The Argument That Protection

question 2

Multiple Choice

The argument that protection

• A)penalizes poor environmental standards is true.
• B)allows us to compete with cheap foreign wages is true.
• C)is necessary for infant industries is true.
• D)saves jobs is flawed.
• E)prevents rich countries from exploiting poor countries is true.

---

Definitions:

Average Total Cost Curve

A graphical representation showing the cost per unit of output when fixed and variable costs are summed up and divided by the total output.

Variable Costs

Costs that vary directly with the level of production or output, such as raw materials and labor expenses.

Fixed Costs

Business expenses that are not affected by changes in the level of production or sales, such as rent and salaries.

Total Variable Costs

The sum of expenses that change directly with the level of output or production volume.