The Infant Industry Argument Is Valid When

question 215

Multiple Choice

The infant industry argument is valid when

• A)a new industry is suffering financial losses.
• B)a new industry is less efficient than foreign competitors.
• C)the industry's prospective gains are sufficient to repay the social losses incurred while it is being protected.
• D)the industry is not likely to be profitable in the future.

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Definitions:

Competitive

characterizes a situation or behavior that involves striving to gain or win something by defeating or establishing superiority over others.

Realistic Group Conflict Theory

A theory suggesting that intergroup conflicts arise from competition over resources or conflicting goals.

Scarce Resources

Resources that are limited in availability, which can lead to competition over their use and allocation.

Conflict

A process that arises when individuals or groups perceive that their interests are being opposed or negatively affected by others.