Which of the Following Statements Is Used to Justify Protectionism

question 105

Multiple Choice

Which of the following statements is used to justify protectionism?

• A)Free trade leads to higher prices for imported goods.
• B)Free trade increases employment by protecting domestic firms.
• C)A country should not rely on other countries for goods that are critical to its national defence.
• D)Trade restrictions are not necessary to protect new firms since they can gain experience and become more productive without protection.

Recognize the main sources of electricity generation in the U.S. and their proportions.

Calculate the economic value of energy inputs in producing goods and services.

Examine the impact of oil prices on the extraction and utilization of various energy resources.

Identify the conditions under which different power generation options become more cost-effective.

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating short-term financial health and operational efficiency.

Current Ratio

A liquidity ratio that measures a company's ability to cover its short-term obligations with its current assets.

Times Interest Earned

A ratio that assesses the risk that bondholders will not receive their interest payments or that interest payments will not be made if earnings decrease. The ratio is computed as income before income tax expense plus interest expense divided by interest expense.

Interest Expense

The cost incurred by an entity for borrowed funds, often reflected as a line item on the income statement.