Which of the Following Is NOT Among the Common Arguments

question 22

Multiple Choice

Which of the following is NOT among the common arguments for protection?

• A) Major war could cut off imports from other countries and leave a country dependent on its own industries, so a nation should protect industries important to conducting a war.
• B) A new or small industry in a country could be crushed by more mature foreign competitors, so the industry should be protected until it is on an equal footing with the foreign competition.
• C) Trade can be disruptive to sectors of society facing foreign competition for the first time, as with small towns built around a single industry.
• D) More international trade will tend to reduce the value of the domestic currency, hurting savers.

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Definitions:

Gross Domestic Product

The total market value of all final goods and services produced within a country in a given period, used as a broad measure of a nation's overall economic activity.

Interstate Highway

A network of controlled-access highways that forms part of the National Highway System in the United States.

Own Garage

An individual's private parking space or storage area typically attached to or located near one's home.

Intermediate Goods

Goods that are used in the production process of other goods and services but are not part of the final product.