An Argument Against the Use of Tariffs to Keep Out

question 52

Multiple Choice

An argument against the use of tariffs to keep out the production of "cheap" foreign labor is that:

• A) wage rates and labor productivity are directly related.
• B) product prices and labor costs are unrelated.
• C) there is no significant relationship between labor productivity and wage levels.
• D) they don't work.

---

Definitions:

Shareholders

Individuals or entities that own shares in a corporation, giving them partial ownership and certain rights.

Minority Shareholder

A shareholder owning less than half of the total shares, and consequently having less influence over corporate decisions.

Decision-making

The cognitive process of choosing a particular course of action among several alternatives to produce a desired result.

Minority Shareholder

An investor who owns less than half of the total shares of a corporation, and therefore does not have control over the company's decisions.