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