Which Is a Valid Counterargument to Use Tariffs to Protect

question 90

Multiple Choice

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

• 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.

---

Definitions:

Return on Equity

A measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested, expressed as a percentage.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing ownership interest in the company.

Gross Margin Percentage

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold, demonstrating the efficiency of a company in managing its production costs relative to sales.

Income Statement

A financial document that shows a company's revenues and expenses over a specified period, illustrating how the net revenue of the company is transformed into net income.