Of the Many Arguments in Favor of Tariffs,the One That

question 6

Multiple Choice

Of the many arguments in favor of tariffs,the one that has enjoyed significant economic justification has been the

• A) cheap foreign labor argument.
• B) infant industry argument.
• C) even playing field argument.
• D) balance of payments argument.
• E) domestic living standard argument.

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Definitions:

Bad Debt Expense

An expense account to record uncollectible receivables.

Payroll Activities

The administrative tasks associated with processing employee wages, withholding taxes, and ensuring the accurate calculation of pay.

Payroll Tax

Taxes that are imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff.

FICA Taxes

Taxes mandated by the Federal Insurance Contributions Act, which fund Social Security and Medicare, split between employers and employees.