The Most Efficient Way to Encourage the Growth of an Infant-Industry

question 91

Multiple Choice

The most efficient way to encourage the growth of an infant-industry is through

• A)a voluntary export restraint.
• B)a tariff.
• C)a subsidy.
• D)an import quota.
• E)none of the above

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Definitions:

Initial Investment

The initial amount of money invested in a project, property, or business to start operations.

Required Rate

The minimum return an investor expects to achieve when investing in a project or security.

Annuity

A financial product that provides a series of payments at fixed intervals, often used for retirement savings or income generation.

Net Present Value

A financial metric that calculates the value of a series of cash flows by discounting them back to the present day, used in capital budgeting to assess the profitability of an investment.