Which Is Not a Commonly Heard Argument for Protectionism

question 175

Multiple Choice

Which is not a commonly heard argument for protectionism?

• A) A strong national defense requires that some military products be produced domestically.
• B) Infant industries need short-term protection from foreign competition in order to grow.
• C) Specialization along the lines of comparative advantage can lead to some economic instability in a nation.
• D) When other nations' economies grow, they typically import fewer goods and services.

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Definitions:

Manufacturing Plant

A facility equipped with machinery for the processing and production of goods or materials.

Workers' Rights

A set of legal rights and claimed human rights having to do with labor relations between workers and their employers, usually obtained through collective bargaining and labor legislation.

Free Market Capitalism

An economic system where prices for goods and services are determined by the open market and consumers, with minimal governmental intervention.

Adam Smith

An 18th-century Scottish economist and philosopher known as the father of modern economics, best known for his theories on free markets and the invisible hand.