Arguments in Favor of Protectionism Include That It

question 144

Multiple Choice

Arguments in favor of protectionism include that it

• A) helps reduce tariffs and quotas.
• B) encourages the development of domestic industries.
• C) encourages economic reliance on foreign countries.
• D) creates opportunities for the outsourcing of domestic jobs.
• E) creates a more favorable environment for a global economy.

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds over a period of time.

Return on Stockholders' Equity

A measure of a company's profitability, calculated as net income divided by average stockholders' equity.

Income Tax Expense

The cost of income taxes, representing the taxpayer's obligation to federal, state, and sometimes local governments, based on earnings before taxes.

Interest Expense

The cost incurred by an entity for borrowed funds, typically reported on the income statement.