A Problem Encountered When Implementing an "Infant Industry" Tariff Is

question 45

Multiple Choice

A problem encountered when implementing an "infant industry" tariff is that:

• A) Domestic consumers will purchase the foreign good regardless of the tariff
• B) Political pressure may prevent the tariff's removal when the industry matures
• C) Most industries require tariff protection when they are mature
• D) Labor unions will capture the protective effect in higher wages

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