The Motive Behind the High Tariffs Imposed by Nations on Imports

question 65

Multiple Choice

The motive behind the high tariffs imposed by nations on imports of manufactured goods, prior to World War II, was to:

• A)deter any possible attempts to promote communism.
• B)protect domestic industries from foreign competition.
• C)prevent the occurrence of the Great Depression.
• D)safeguard patents, copyrights, and trademarks.
• E)promote the trade of services over the trade of manufactured goods.

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Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, ending with the net income or loss for that period.

Advertising Expense

Advertising expense is the cost incurred in promoting products or services through various media to increase sales.

Interest Expense

The cost incurred by an entity for borrowed funds, including loans, bonds, or lines of credit, which is charged as an expense on the income statement.

Utility Bill

A regular invoice for essential services such as electricity, water, gas, or telecommunications provided to individuals or businesses.