Which of the Following Statements Is True About Protection of an Infant

question 34

Multiple Choice

Which of the following statements is true about protection of an infant industry?

• A)Governments can impose temporary trade barriers on foreign imports to ensure that young firms gain a large share of the domestic market.
• B)Such protection is easy to remove.
• C)Protected companies become more efficient and produce products with lower prices.
• D)Protecting infant industries rarely allows countries to develop a modern industrial sector.

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Definitions:

Private Ownership

The legal possession of assets, resources, or property by individuals or corporations rather than by the state or public entities.

Consumer Sovereignty

The concept that consumers' preferences and choices dictate the production and consumption of goods and services in an economy.

Dollar Votes

A term used in economics to describe how consumers show their preferences and exert influence in the market by how they spend their money.

Dollar Votes

The concept that consumers "vote" for the products they prefer through the dollars they spend.