The Infant-Industry Argument

question 205

Multiple Choice

The infant-industry argument

• A)is based on the belief that protecting industries when they are young will pay off later.
• B)is based on the belief that protecting industries producing goods and services for infants is necessary if a country is to have healthy children.
• C)has the support of most economists.
• D)is an argument that is advanced by advocates of free trade.

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Definitions:

First-Order Autocorrelation

First-order autocorrelation is a statistical measure indicating the correlation between values in a time series and their immediate predecessors.

Durbin-Watson D Statistic

A statistical tool designed to determine the existence of first-lag autocorrelation in the residuals of a regression analysis.

Regression Analysis

A statistical method for investigating the relationship between a dependent variable and one or more independent variables.

Durbin-Watson Statistic

A measure used in statistics to find out whether autocorrelation at lag one occurs in the residuals after performing a regression analysis.