Which of the Following Is True with Respect to the Infant-Industry

question 28

Multiple Choice

Which of the following is true with respect to the infant-industry argument for protection?

• A) It refers to temporary protection to establish a domestic industry.
• B) To be valid, the return to the grown-up industry must be sufficiently high also to repay for the higher prices paid by domestic consumers of the commodity during the infancy period.
• C) It is inferior to an equivalent production subsidy to the infant industry.
• D) All of the above

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Definitions:

Production Department

A division within a manufacturing company responsible for the actual production of goods.

Prior Department

Refers to the earlier stage or department in a production process or organizational structure that precedes the current focus point.

Partially Processed Product

Items that have undergone some stages of the production process but are not yet completed.

Repetitive Manufacturing Processes

Production processes that repeat the same sequence of operations on a continuous basis to produce identical or very similar products.