Which of the Following Statements Is True

question 116

Multiple Choice

Which of the following statements is true?

• A) A subsidy to an infant industry is a more efficient way to protect it from foreign competition than a tariff on the competing foreign goods.
• B) The infant- industry argument is valid only if the benefits of learning- by- doing in the infant industry spill over to other parts of the economy.
• C) Both statements are true.
• D) Neither of the statements is true.

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Definitions:

Strategic Defense Initiative

A proposed missile defense system announced by President Ronald Reagan in 1983, intended to protect the United States from attack by ballistic strategic nuclear weapons.

Camp David Accords

A peace treaty between Israel and Egypt brokered by the United States in 1978, leading to significant steps towards peace in the Middle East.

Oliver North

A United States Marine Corps officer involved in the Iran-Contra affair during the Reagan administration.