Which of the Following Statements Is True

question 44

Multiple Choice

Which of the following statements is true?

• A) The infant-industry argument is valid only if the benefits of learning-by-doing in the infant industry spill over to other parts of the economy.
• B) A subsidy to an infant industry is a more efficient way to protect it from foreign competition than a tariff on the competing foreign goods.
• C) Both statements are true.
• D) Neither of the statements is true.

---

Definitions:

Autonomic Responses

Involuntary activities of the body controlled by the autonomic nervous system, such as heart rate and digestion.

Electrical Potentials

The difference in the electric charge between two points in a circuit expressed in volts.

Guilty-knowledge Test

A psychological assessment where the subject's recognition of certain information is tested to infer their familiarity due to involvement in a specific event or crime.

Physiological Processes

Biological functions and activities carried out by living organisms to maintain life, such as respiration, digestion, and regulation of body temperature.