Which Is a Valid Counterargument to Use Tariffs to Protect

question 120

Multiple Choice

Which is a valid counterargument to use tariffs to protect high wages from cheap foreign labor?

• A) The benefits of such a policy will go to consumers,not workers.
• B) The benefits of such a policy will go to businesses,not workers.
• C) Wage rates in a nation are largely determined by productivity.
• D) The economy may become overheated,thus increasing inflation.

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Definitions:

Marginal Tax Rates

The rate at which your last dollar of income is taxed, representing the tax bracket your top income falls into.

Capital Gains

are the increase in value of an investment or real estate, realized when the asset is sold for more than its purchase price.

Extra Cash Dividend

A supplementary dividend paid to shareholders that is above the company's normal dividend level.

Stock Price

The cost of purchasing a single share of a particular stock, which can fluctuate based on market conditions.