Trade Restrictions Will Stop Foreign Imports, Which Will Increase American

question 23

Essay

Trade restrictions will stop foreign imports, which will increase American employment and protect American jobs. Most economists realize that this argument is wrong. Can you explain why?

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Definitions:

Net Income

The final income of a firm following the deduction of all expenditures, taxes, and interest from the gross revenue.

Dividends

Payments made by a corporation to its shareholder members, usually as a distribution of profits.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, revealing profit or loss.

Retained Earnings

Retained earnings are the portion of a company’s profits that is kept or retained rather than being paid out as dividends to shareholders or reinvested into the business.