Economists Believe the Most Persuasive Argument for Protectionism Is to Protect

question 26

Multiple Choice

Economists believe the most persuasive argument for protectionism is to protect infant industries.But the argument has a drawback.What is this drawback?

• A)Governments always make the level of protection for infant industries too high.
• B)Governments are usually too impatient and do not allow protection to remain in place long enough to allow industries to be competitive in international markets.
• C)Governments usually use tariffs, rather than quotas, to protect infant industries in order to collect tariff revenue. (Quotas do not result in government revenue).
• D)Protection lessens the need for firms to become productive enough to compete with foreign firms; this often results in infant industries never "growing up."

Analyze company performance and potential for future stock price appreciation based on given financial data.

Identify what constitutes cash and cash equivalents.

Recognize the direct and indirect methods of reporting cash flows from operating activities.

Comprehend the process of converting accrual basis income to cash basis.

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Definitions:

Aircraft Production

The process and industry involved in designing, manufacturing, and assembling aircraft.

Newspaper Printing

The process of mass-producing copies of a newspaper document, whereby the news and other data are printed onto papers.

Economies of Scale

The cost advantage that arises with increased output of a product, where the average cost per unit decreases as the scale of production rises.

Inputs

Resources such as labor, materials, and capital used in the production process to create goods and services.