A Common Argument for the Use of Tariffs (For a Large

question 79

Multiple Choice

A common argument for the use of tariffs (for a large economy) when the objective is to maximize a country's national income is to

• A)improve the country's terms of trade.
• B)subject infant industries to the discipline of the market.
• C)enjoy the advantages of diversification.
• D)prevent learning-by-doing by potential trade partners.
• E)increase the prices of domestic exports.

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Definitions:

Par Value

The nominal or face value of a stock or bond, as stated by the issuing company, which may bear no relation to its market value.

Dividends Distributed

The total amount of dividends that have been given out to shareholders over a specified period.

Cumulative

Referring to the total amount accumulated over time, often used in the context of dividends, earnings, or effects that are added together continuously.

Nonparticipating

A term often used in insurance to describe policies that do not grant the policyholder dividends from the insurer's profits.