A Downfall of the Infant-Industry Argument Is That

question 164

Multiple Choice

A downfall of the infant-industry argument is that

• A) most industries need protection when they are mature, not when they are first established.
• B) the amount of the tariff is unlikely to have much impact on the success of an infant industry.
• C) once a tariff is granted, political pressure will likely force withdrawal of the tariff before the industry matures.
• D) once established, a tariff is politically difficult to remove.

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