The Proposition That Protection Is Necessary to Allow an Infant

question 10

Multiple Choice

The proposition that protection is necessary to allow an infant industry to grow into a mature industry so that it can compete in world markets is the

• A)infant-maturity argument.
• B)infant-industry argument.
• C)new industry proposition.
• D)growth proposition.
• E)dynamic comparative advantage argument.

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Definitions:

Return On Total Assets

A financial ratio that measures a company's ability to generate earnings from its assets, calculated by dividing net income by total assets.

Market Price

The present cost at which a service or asset is available for purchase or sale in the market.

Common Stock

Represents ownership shares in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Return On Equity

A financial ratio indicating the profitability of a company in relation to shareholders' equity, showing how effectively a company uses investments to generate earnings growth.