A Problem Encountered When Implementing an "Infant Industry" Tariff Is

question 45

Multiple Choice

A problem encountered when implementing an "infant industry" tariff is that:

• A) Domestic consumers will purchase the foreign good regardless of the tariff
• B) Political pressure may prevent the tariff's removal when the industry matures
• C) Most industries require tariff protection when they are mature
• D) Labor unions will capture the protective effect in higher wages

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Definitions:

Diffusion Of Innovation

A theory that seeks to explain how, why, and at what rate new ideas and technology spread through cultures.

Late Majority

A group of adopters who are slower than the average participant to embrace new ideas, technologies, or products.

Innovators

Individuals or organizations that introduce new ideas, products, or methods into the market.

Early Majority

A group of consumers who adopt new products or innovations shortly after the early adopters have done so, contributing to wider acceptance and popularity.