What Is the Infant-Industry Argument for Protection from International Trade

question 56

Multiple Choice

What is the infant-industry argument for protection from international trade?

• A) Domestic firms must be protected until they gain a comparative advantage.
• B) Any firm necessary in wartime must be protected.
• C) Foreigners selling products in the economy limit the nation's diversity and stability.
• D) Domestic jobs must be protected from competition from low-paid foreign workers.
• E) Foreign producers selling below cost to drive domestic firms bankrupt must be stopped.

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Definitions:

Midpoint

The central point in a class interval.

Class Interval

A range of values in a dataset that is used to organize data into categories or groups for frequency distribution analysis.

Frequency Distribution

The representation, either in graphical or tabular format, of how often each distinct value occurs in a set of data.

Class Interval

A range of values in a data set that are divided into different classes or categories for frequency distribution analysis.