Which of the Following Is an Argument in Favor of Interventionist

question 23

Multiple Choice

Which of the following is an argument in favor of interventionist trade policies?

• A)Cheaper capital goods
• B)Declining terms of trade
• C)Decreased losses from rent-seeking activities
• D) All of the above
• E) None of the above

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Definitions:

Profit

The financial gain obtained when the revenue from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Total Revenue

The gross revenue of a company, being the entire sum of income from goods or services sold, prior to the deduction of any costs.

Marginal Cost

The extra expense associated with the production of an additional unit of a product or service.

Profit-Maximizing Price

The price at which a firm can maximize its profits, determined by the market structure and demand elasticity.