The Infant-Industry Argument Is Used by Those Who Assert They

question 46

Multiple Choice

The infant-industry argument is used by those who assert they want to

• A) limit imports to protect new industries.
• B) increase exports to encourage growth of new industries.
• C) limit exports.
• D) increase imports to earn money to support new industries.
• E) encourage foreign firms to dump in the United States.

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Definitions:

Long-Term Options

Options contracts with an expiration date longer than one year, offering the right to buy or sell an underlying asset at a set price in the future.

Strike Price

The predetermined price at which the holder of an option can buy or sell the underlying asset.

Call Option

A financial contract giving the buyer the right, but not the obligation, to buy an asset at a specified price within a specified time.

Capital Gain

The profit from the sale of a capital asset for more than its purchase price.