Most Scholars Argue That the Reciprocal Trade Agreements Act (RTAA)of

question 22

Multiple Choice

Most scholars argue that the Reciprocal Trade Agreements Act (RTAA) of 1934

• A) delegated the President the authority to increase tariffs in exchange for equivalent concessions from foreign governments.
• B) authorized the Congress to reduce tariffs in exchange for equivalent concessions from foreign governments.
• C) transformed the large heterogeneous group favoring liberalization into smaller groups of export-oriented industries that could more easily organize.
• D) transformed the smaller homogeneous group favoring protectionism into larger groups of export-oriented industries that could more easily organize.
• E) transformed the smaller homogeneous group favoring liberalization into larger groups of export-oriented industries that could more easily organize.

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Definitions:

Security Characteristic Line

A graph that shows the relationship between the returns of a security versus the returns of the market, used in the analysis of a security's risk and return.

Benchmark Error

Use of an inappropriate proxy for the true market portfolio.

Capital Market Line

In the capital asset pricing model, a line that describes the risk-return trade-off for efficient portfolios, showing that higher risk leads to higher expected return.

Measurement Error

The difference between a measured value of quantity and its true value, often due to imperfections in measurement tools or techniques.