Which of the Following Arguments Regarding the Need for Protectionism

question 53

Multiple Choice

Which of the following arguments regarding the need for protectionism is recognized by economists as valid?

• A) Need to keep money at home
• B) Encouragement of capital accumulation
• C) Industrialization of underdeveloped countries
• D) Conservation of natural resources
• E) Maintenance of employment and reduction of unemployment

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Definitions:

Rents

Payments made for the use of property or land; in economics, it also refers to earnings in excess of the minimum amount needed to keep a factor of production in its current use.

Dollar Loss

A decrease in the value of an investment, expressed in dollar terms, compared to its purchase price.

AIG

American International Group, a multinational finance and insurance corporation known for its extensive global operations and services.

Fannie Mae

A government-sponsored enterprise (GSE) in the United States aimed at expanding the secondary mortgage market by securitizing mortgages into mortgage-backed securities.