All but One of the Following Statements Is Used to Justify

question 161

Multiple Choice

All but one of the following statements is used to justify protectionism.Which statement is not used to justify protectionism?

• A)Free trade leads to higher prices for imported goods.
• B)Free trade reduces employment by driving domestic firms out of business.
• C)A country should not rely on other countries for goods that are critical to its national defense.
• D)Trade restrictions are necessary to protect new firms until they can gain experience and become more productive.

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Definitions:

Ledger

A comprehensive collection of a company's financial transactions, organized by account.

Net Income

The total earnings a company makes after all expenses and taxes have been deducted from revenue.

Stockholders' Equity

Stockholders' equity represents the residual interest in the assets of a corporation after deducting its liabilities, essentially the net worth attributable to shareholders.

Note Payable

A legal obligation representing a loan or promissory note that requires the borrower to repay the lender a certain amount of money at a future date or on demand.