Which Is Not a Commonly Heard Argument for Protectionism

question 175

Multiple Choice

Which is not a commonly heard argument for protectionism?

• A)A strong national defense requires that some military products be produced domestically.
• B)Infant industries need short-run, but not long-run, protection from foreign competition.
• C)Specialization along the lines of comparative advantage can lead to greater economic instability for a nation.
• D)When other nations' economies grow they typically import fewer goods and services.

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Definitions:

Product Labor

The human effort involved in the manufacturing or production process of goods.

Unionization

The process by which workers join together to form a union in order to negotiate collectively with their employer for better wages, benefits, and working conditions.

MRP Curve

The Marginal Revenue Product curve shows the additional revenue generated by employing one more unit of input or labor.

Wage Rate

The standard amount of pay given for work performed, typically expressed per hour, day, or piece.