Tariffs Are NOT Defended on the Grounds That They

question 1

Multiple Choice

Tariffs are NOT defended on the grounds that they

• A) improve the terms of trade of foreign nations.
• B) protect jobs and reduce unemployment.
• C) promote growth and development of young industries.
• D) prevent over-dependence of a country on only a few industries.
• E) protect domestic producers from foreign low prices.

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Definitions:

Gini Ratio

A measure to determine the imbalance in earnings among a community's members, moving from 0, suggesting equality, to 1, suggesting extreme inequality.

Perfect Income Equality

A hypothetical scenario where every individual or household in a society earns exactly the same income, eliminating any income disparity.

Lorenz Curve

A graphical representation of the distribution of income or of wealth within a population, highlighting inequalities.