Which of the Following Is NOT an Argument Made for the Imposition

question 108

Multiple Choice

Which of the following is NOT an argument made for the imposition of trade restrictions?  

• A) Trade restrictions are necessary for national defence purposes. 
• B) Trade restrictions are necessary to improve economic efficiency. 
• C) Trade restrictions are necessary to protect fledgling industries. 
• D) Trade restrictions are necessary to protect jobs.

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Definitions:

Merger Premium

The additional amount an acquiring company pays over the market value of the shares to purchase another company.

Equity-Financed

Pertains to the method of funding a business through selling shares to investors, thereby increasing ownership equity.

Incremental Value

The additional value created by undertaking a specific project or action, measured by the difference in a firm's value with and without the undertaking.

Outstanding Stock

The total shares of a corporation that are currently owned by all its shareholders, including shares held by institutional investors and restricted blocks held by insiders and company officers.