Suppose There Is a Policy Debate Over Imposing Trade Restrictions

question 82

Multiple Choice

Suppose there is a policy debate over imposing trade restrictions on imported semiconductors in the United States.A congresswoman argues that it is necessary to impose trade restrictions,such as a tariff,on the semiconductor industry to protect workers in the domestic semiconductor industry.The congresswoman claims that without trade protection,there will be layoffs,causing many U.S.workers in the semiconductor industry to be unemployed.She is basing her preference for trade restrictions on the:

• A)infant industry argument.
• B)declining industries argument.
• C)national defense argument.
• D)jobs and income argument.
• E)antidumping argument.

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Definitions:

Richard Alm

An economic journalist and author known for co-authoring publications on economic issues, notably with economist William A. "Sandy" Darity.

Consumption

The use of goods and services by households, which is a primary component of GDP.

Workers

Individuals engaged in any form of employment for compensation.

Firm

A business organization or entity engaged in commercial, industrial, or professional activities, designed to provide goods or services for profit.