Final answer:
Option (d), The effectiveness of tariffs in reducing unemployment is partially true as it can temporarily protect domestic jobs but may lead to higher consumer prices and retaliatory trade measures, without solving long-term economic issues.
Step-by-step explanation:
Evaluating the statement "An excellent way to reduce unemployment is to enact tariffs on imported goods," the answer would be d) Partially true. Enacting tariffs may temporarily protect certain domestic industries by making imported goods more expensive, which can lead to increased demand for domestically produced goods and potentially boost employment in those sectors. However, this strategy can also lead to higher prices for consumers, retaliation from trading partners, and inefficiencies in the market.
Additionally, long-term unemployment may not be effectively addressed through protectionist measures, as they do not solve underlying economic issues and can eventually lead to a depletion of domestic sources of products. Free trade associations and economic unions highlight the benefits of cooperation and reduced trade barriers for overall economic health. It's important to consider that protectionism impacts not only the protected industry but also other sectors, including those which rely on imported goods as inputs or are affected by retaliatory measures from other countries.