Question : 18.3   The Case Against Protection 1) If supporters of restrictions imports : 1240680

18.3   The Case Against Protection

1) If supporters of restrictions on imports argue that protection is needed to preserve a strategic industry, which of the following is being used?

A) Save domestic jobs argument

B) National security argument

C) Dumping argument

D) Infant-industry argument

E) Protecting national culture argument

2) Which of the following is the national security argument against free trade?

A) A country must protect industries that produce defense equipment and armaments.

B) A country must protect new industries to give them a chance to mature before facing foreign competition.

C) A country must protect firms from dumping by foreign companies.

D) A country must protect its consumers from foreign influences.

E) A country must preserve its jobs.

3) What is the national security argument to support protection from international trade?

A) Domestic firms must be protected until they gain a comparative advantage.

B) Any firm necessary in wartime must be protected.

C) Foreign producers selling below cost to drive domestic firms bankrupt must be stopped.

D) Domestic jobs must be protected from competition from low-paid foreign workers.

E) Foreigners selling products in the economy limit the nation’s diversity and stability.

4) What is the infant-industry argument for protection from international trade?

A) Domestic firms must be protected until they gain a comparative advantage.

B) Any firm necessary in wartime must be protected.

C) Foreign producers selling below cost to drive domestic firms bankrupt must be stopped.

D) Domestic jobs must be protected from competition from low-paid foreign workers.

E) Foreigners selling products in the economy limit the nation’s diversity and stability.

5) When protection is encouraged to protect a growing domestic industry; which of the following is being used?

A) Save domestic jobs argument

B) National security argument

C) Anti-dumping argument

D) Infant-industry argument

E) Diversity and stability argument

6) The infant-industry argument is used by those who assert they want to

A) limit imports to protect new industries.

B) increase exports to encourage growth of new industries.

C) limit exports.

D) increase imports to earn money to support new industries.

E) encourage foreign firms to dump in the United States.

7) The infant-industry argument for protection is based on the idea of

A) learning-by-doing.

B) dumping.

C) absolute advantage.

D) quotas are the least harmful method of protecting domestic firms.

E) saving jobs in the U.S. economy.

8) What is the dumping argument for protection from international trade?

A) Domestic firms must be protected until they gain a comparative advantage.

B) Any firm necessary in wartime must be protected.

C) Foreign producers selling below cost to drive domestic firms bankrupt must be stopped.

D) Domestic jobs must be protected from competition from low-paid foreign workers.

E) Foreigners selling products in the economy limit the nation’s diversity and stability.

9) When a tariff supporter argues that foreign producers are selling their products for prices below the costs of production, which of the following is being used?

A) Save domestic jobs argument

B) National security argument

C) Dumping argument

D) Infant-industry argument

E) Diversity and stability argument

10) Dumping is defined as the situation in which

A) domestic producers sell a product at prices below the cost of production.

B) foreign producers sell a product at a price below the cost of production.

C) foreign producers sell a product at a price above a fair level.

D) domestic producers cut production to drive up domestic prices.

E) domestic producers are protected by tariffs.