Arguments in Support of Protectionism (And Against Free Trade) Include

question 265

Multiple Choice

Arguments in support of protectionism (and against free trade) include all of the following EXCEPT

• A) new and troubled industries need to be protected until they acquire sufficient strength to compete equally against their foreign counterparts.
• B) jobs at home should be protected from cheap foreign labor.
• C) protectionism increase total domestic consumption possibilities.
• D) national security interests require that nations retain the ability to produce vital materials at home and avoid dependence upon potential enemies.

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Definitions:

Proportions

The relationship between quantities that defines how much of one thing is present relative to another.

Profit

The profit achieved when the revenue from a business operation surpasses the expenses, costs, and taxes required to maintain it.

Production Function

A mathematical model detailing how inputs are converted into outputs in the production process.

Labor

Human work, encompassing both physical and mental tasks, dedicated to the manufacturing of goods and services.