Arguments for Imposing Trade Restrictions Include

question 15

Multiple Choice

Arguments for imposing trade restrictions include

• A) the misallocation of international resources.
• B) equalizing a nation's balance of payments.
• C) higher prices for consumers.
• D) restriction of consumers' choices.
• E) none of the above.

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Definitions:

Profit

The financial gain obtained when the amount earned from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Industry Supply

The total output of goods or services that firms in a specific industry are willing and able to sell at various prices, over a certain period.

Industry Demand

The total demand for all the products or services produced by a particular industry.

Positive Profits

Earnings that occur when a company's total revenues exceed its total costs, indicating financial gain from its operations.