Which Is Not a Commonly Heard Argument for Protectionism

question 175

Multiple Choice

Which is not a commonly heard argument for protectionism?

• A)A strong national defense requires that some military products be produced domestically.
• B)Infant industries need short-run, but not long-run, protection from foreign competition.
• C)Specialization along the lines of comparative advantage can lead to greater economic instability for a nation.
• D)When other nations' economies grow they typically import fewer goods and services.

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Definitions:

Product-line Extension

The addition of new products to an existing line, offering customers new choices and expanding the product range.

Blueberry Cheerios

A flavor variety of Cheerios cereal that incorporates the taste of blueberries.

General Mills

A multinational manufacturer and marketer of branded consumer foods sold through retail stores.

Launch Stage

The phase in the lifecycle of a product or service during which it is introduced to the market after its development and testing.