The Aim of Tariffs Is to

question 61

Multiple Choice

The aim of tariffs is to

• A)sanction countries that break global agreements.
• B)free the flow of goods, services, and capital between countries.
• C)make the best use of capital resources.
• D)protect domestic industries and jobs.
• E)decline barriers to trade and investment.

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Definitions:

Full Employment

A situation in an economy when all available labor resources are being used in the most efficient way possible, typically characterized by the absence of cyclical unemployment.

Annual Deficit

The shortfall in a government's income compared to its spending in a given fiscal year.

George Bush

Refers to either George H.W. Bush, the 41st President of the United States (1989-1993), or his son George W. Bush, the 43rd President of the United States (2001-2009), each having made lasting impacts on American and international politics.

Crowding-in

An economic phenomenon where increased government spending leads to higher private sector investment.