Which of the Following Statements Is Used to Justify Protectionism

question 142

Multiple Choice

Which of the following statements is used to justify protectionism?

• A)Free trade leads to higher prices for imported goods.
• B)Free trade increases employment by protecting domestic firms.
• C)A country should not rely on other countries for goods that are critical to its national defense.
• D)Trade restrictions are not necessary to protect new firms since they can gain experience and become more productive without protection.

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Definitions:

Variable

An element or factor that can change or vary, impacting the outcome of mathematical models, experiments, or financial forecasts.

Fixed Costs

These are expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Activity Index

A measure used to quantify the level of activity or engagement in a specific area, often used in various financial and operational analysis.

Flexible Budget

A budget that adjusts to different levels of activity, providing a useful comparison for actual costs incurred.