The Main Problem with Using the Infant Industries Argument to Justify

question 70

Multiple Choice

The main problem with using the infant industries argument to justify protecting an industry from foreign competition is that

• A) all industries will claim that they are infant industries in order to gain protection.
• B) the protected industry will become too efficient and drive out foreign competition.
• C) once in place, it is difficult to remove protection even as the industry matures.
• D) it causes the goods that are produced in the protected industry to have lower prices.

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Definitions:

Longitudinal Study

A research design that involves repeated observations of the same variables over short or long periods of time.

Mature

Referring to a state of full development or completed growth and development in either physical, emotional, or intellectual capacities.

Psychoanalysis

A therapeutic approach developed by Freud that seeks to explore unconscious motivations and conflicts as drivers of behavior.

Empirical Evidence

Empirical evidence is information acquired by observation or experimentation that serves as the basis for knowledge and theory building.