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:

Pakistani Rupees

The official currency of Pakistan, used as a medium of financial transaction within the country.

Real Exchange Rate

The rate at which the currency of one country can be exchanged for the currency of another country, adjusted for inflation.

Nominal Exchange Rate

The price at which one currency can be exchanged for another currency, without adjustment for inflation.

Pesos

Pesos are the unit of currency in several countries, including Mexico and the Philippines.