The Key Industries Argument for Trade Restrictions Relies on the Notion

question 154

Multiple Choice

The key industries argument for trade restrictions relies on the notion that:

• A) economies of scale are easier to achieve in exporting industries.
• B) products with inelastic supply are the major source for job creation.
• C) some industries deserve protection because they provide positive spillover effects to the rest of the economy.
• D) war may disrupt trade flows.

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Definitions:

Provincial Statute

A law or regulation enacted by the legislative body of a province or state within a country.

Law Merchant

A body of commercial law used by merchants, covering aspects of contracts, payments, transactions, and dispute resolution.

Merchant Guilds

Associations of merchants and traders in medieval towns, formed to protect mutual trading interests, regulate commerce, and ensure business security.

Sale of Goods Act

Legislation governing the sale of goods, ensuring rights, obligations, and remedies in transactions are clear and enforceable.