The Infant-Industry Argument About Tariffs Implies That

question 111

Multiple Choice

The infant-industry argument about tariffs implies that

• A) it is unfair to levy tariffs on items intended for use by infants.
• B) tariffs should be levied on foreign products that compete with new domestic industries only in the short run.
• C) if a newly established domestic industry can survive in the short run, a tariff should be levied to protect it from foreign competition in the long run.
• D) permanent tariffs should be levied on foreign products that compete with those produced by newly established domestic industries.