A Basic Problem with the Infant-Industry Argument Is That

question 136

Multiple Choice

A basic problem with the infant-industry argument is that

• A) most industries need protection when they are mature, not when they are first established.
• B) the amount of the tariff is unlikely to have much impact on the success of an infant industry.
• C) political pressure will likely prevent the withdrawal of the tariff when the industry matures.
• D) domestic consumers will continue to buy the foreign products anyway, regardless of the tariff.

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Definitions:

Cash Over

This term indicates a situation where the actual amount of cash exceeds the expected or recorded amount, often in a cash register or in accounting records.

Income Statement

A financial statement that shows the income, expenses, and profits over a specific period, indicating the financial performance of a business.