Which of the Following Is a Problem with the Infant-Industry

question 15

Multiple Choice

Which of the following is a problem with the infant-industry argument for protection?

• A)Most developed countries increasingly have a larger portion of retirees than youth.
• B)Consumer groups become very active in protesting the higher prices that result during infancy.
• C)Other countries retaliate by limiting exports of technology needed by the infant industry producers.
• D)If the industry does not lower costs sufficiently to be competitive, it becomes a formidable pressure group for continued protection.

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Definitions:

Wages Expense

The total cost incurred by a company for the payment of wages to its employees during a specific period.

Adjusting Entry

Financial records prepared at the close of an accounting timeframe to attribute profits and outlays to the specific period in which they happened.

Accumulated Depreciation

The cumulative depreciation of an asset up to a single point in its life, reflecting how much of the asset's value has been used up over time.

Fixed Asset

Long-term tangible property, plant, or equipment that a firm owns and uses in its operations to generate income.