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rashmi.kaushal
- Senior | Next Rank: 100 Posts
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Which of the following best completes the passage?
Critics of Country A's trade policy with Country Z contend that Country A's low tariffs are responsible for its large trade deficit with Country Z. Government officials, however, argue that there is a trade deficit with Country Z because low labor costs in Country Z allow its companies to manufacture goods cheaply. The officials also claim that economic competition from Country Z is responsible for better prices for Country A's consumers. Therefore, they say, the most logical way to lower the trade deficit without hurting Country A's consumers is to _________.
(A) raise the tariffs on goods imported from Country Z
(B) encourage businesses in Country A to reduce their labor costs
(C) increase taxes on all goods not manufactured in Country A
(D) improve the products manufactured by Country A's companies
and market them heavily in Country A
(E) subsidize all of Country A's companies that manage to
maintain their prices at the level of the goods produced by
Country Z
OA- Later
Critics of Country A's trade policy with Country Z contend that Country A's low tariffs are responsible for its large trade deficit with Country Z. Government officials, however, argue that there is a trade deficit with Country Z because low labor costs in Country Z allow its companies to manufacture goods cheaply. The officials also claim that economic competition from Country Z is responsible for better prices for Country A's consumers. Therefore, they say, the most logical way to lower the trade deficit without hurting Country A's consumers is to _________.
(A) raise the tariffs on goods imported from Country Z
(B) encourage businesses in Country A to reduce their labor costs
(C) increase taxes on all goods not manufactured in Country A
(D) improve the products manufactured by Country A's companies
and market them heavily in Country A
(E) subsidize all of Country A's companies that manage to
maintain their prices at the level of the goods produced by
Country Z
OA- Later
