Suppose there is a policy debate regarding the United States imposing trade restrictions on imported tires: A congresswoman from a state with several tire factories argues that the government should impose a tariff on tires because they are a necessary input into the production of various weapons. Free trade would make the United States overly dependent on foreign countries for the supply of tires. In case of a war, the United States might not be able to make or purchase enough tires and, therefore, would not be able to make enough weapons to defend itself. Which of the following justifications is the congresswoman using to argue for the trade restriction on tires? O Saving domestic jobs argument O Low foreign wages argument O National defense argument O Infant industry argument O Foreign export subsidies argument

Suppose there is a policy debate regarding the United States imposing trade restrictions on imported tires: A congresswoman from a state with several tire factories argues that the government should impose a tariff on tires because they are a necessary input into the production of various weapons. Free trade would make the United States overly dependent on foreign countries for the supply of tires. In case of a war, the United States might not be able to make or purchase enough tires and, therefore, would not be able to make enough weapons to defend itself. Which of the following justifications is the congresswoman using to argue for the trade restriction on tires? O Saving domestic jobs argument O Low foreign wages argument O National defense argument O Infant industry argument O Foreign export subsidies argument

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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