If the Infant Industry Argument Is Used to Justify Protecting

question 186

Multiple Choice

If the infant industry argument is used to justify protecting an industry that has already matured, then:

• A) consumers will lose because the price they will pay is less than the world price.
• B) consumers will lose because the price they will pay is greater than the world price.
• C) no one loses.
• D) stockholders lose because the firms in that industry cannot compete with other firms.

---

Definitions:

Rises

In the context of graphs, refers to the upward movement of a function or value as it moves along the horizontal axis.

Falls

The act or an instance of falling; movement downwards due to gravity.

Horizontal

Parallel to the horizon; moving or lying in a flat position.

Sketch Graph

The act of drawing a rough or simplified version of a graph to represent a function or data visually without precise calculations.