A Danger with the Infant Industry Argument Is That

question 135

Multiple Choice

A danger with the infant industry argument is that

• A)it will increase product variety too much.
• B)the protection may last long after it was initially justified.
• C)it will increase international trade around the world.
• D)a nation's security may be at stake.
• E)firms may engage in strategic behavior.

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Definitions:

Government Program

An initiative undertaken by a government body to achieve specific social, economic, or political objectives, often involving expenditure from public funds.

Subsidy

Financial assistance granted by the government, organizations, or individuals to support businesses, markets, or activities deemed beneficial to the public interest.

Demand Curve

A graphical representation of the relationship between the price of a good or service and the quantity demanded by consumers.

Price Ceiling

A legally imposed limit on how high a price can be charged for a product, service, or commodity.