Which Statement Does NOT Describe the Limitations of a Policy

question 3

Multiple Choice

Which statement does NOT describe the limitations of a policy of restriction to protect infant industries?

• A) There is not much evidence that protecting infant industries in advanced economies is needed.
• B) Infant industry protection often focuses on protecting labor-intensive industries, which is not critical in countries with large labor supplies.
• C) Infant industry protection is rarely done in a way that makes the industry internationally competitive.
• D) Countries waste their resources protecting infant industries, since most develop well without protection.

---

Definitions:

Net Present Value (NPV)

The discrepancy between cash inflows' present value and cash outflows' present value during a defined timeframe.

Scenario Approach

A strategic planning method that explores future possibilities by simulating different plausible future outcomes.

Simulation Analysis

A method of assessing the impact of different variables on a project or investment by running multiple scenarios.

CCA Rate

Stands for Capital Cost Allowance rate, which is the rate at which a business can depreciate its assets for tax purposes in certain jurisdictions.