A Major Difficulty with the Infant Industry Argument for Protection

question 36

Multiple Choice

A major difficulty with the infant industry argument for protection is that

• A)government revenue will fall with a tariff.
• B)it requires the nation to fall into the large country case for tariff protection.
• C)effective rates of protection are usually greater than nominal rates.
• D)the measurement of production externalities is hard and uncertain.
• E)the productivity of infant industries is usually declining.

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Definitions:

Deindividuation

A psychological state characterized by lowered self-consciousness, decreased sense of personal responsibility, and increased behavior in line with group norms, often seen in large groups or anonymous contexts.

Ku Klux Klan

A secretive and often violent organization in the United States, historically advocating for white supremacy, white nationalism, and anti-immigration sentiments.

Aggression

A range of behaviors intended to harm or assert dominance over others, which can be physical or verbal.

Deindividuation

A psychological state where an individual loses their sense of self-awareness and feels less accountable for their actions, often occurring in group settings.