According to Empirical Observations,the Cost of Restricting International Trade in the U.S.is

question 57

Multiple Choice

According to empirical observations,the cost of restricting international trade in the U.S.is much greater than the benefits generated from restriction.In the light of the above observation,which of the following statements is true?

• A)The benefits of protecting domestic jobs typically outweigh the costs.
• B)Consumers end up paying much more for the goods they buy in order to subsidize the relatively inefficient domestic producer.
• C)U.S.GDP would be over $14 billion higher with import restrictions than without restrictions.
• D)Protection of the U.S.textile and sugar industries means that all consumers pay a lower price for clothing and sugar.
• E)Protection of the domestic industries enable the producers to charge lower prices for their products.

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Definitions:

Venture Capital

A form of private equity financing that is provided by venture capital firms or funds to startups, early-stage, and emerging companies that have been deemed to have high growth potential.

Line-by-Line Method

An accounting method for consolidating the financial statements of a parent company and its subsidiaries by adding together similar items line by line.

AASB 11

A standard that outlines the accounting for joint arrangements, focusing on the contractual sharing of control over an economic activity between parties.