One Should Be Especially Wary of the National-Security Argument for Restricting

question 15

Multiple Choice

One should be especially wary of the national-security argument for restricting trade when that argument is made by

• A)representatives of industry.
• B)representatives of the defense establishment.
• C)members of households.
• D)foreign government officials.

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Definitions:

Marginal Cost

The cost associated with producing an additional unit of a product or service.

Diminishing

Refers to a reduction or decrease over time.

Marginal Product

Marginal product refers to the additional output resulting from using one more unit of a production input, holding all other inputs constant.

Fixed Costs

Costs that remain consistent regardless of production or sales volume, including rent, salaries, and insurance fees.