Which of the Following Arguments Regarding the Need for Protectionism

question 20

Multiple Choice

Which of the following arguments regarding the need for protectionism is recognized by economists as valid?

• A) Need to keep money at home.
• B) Encouragement of capital accumulation.
• C) Protection of an infant industry.
• D) Conservation of natural resources.
• E) Maintenance of employment and reduction of unemployment.

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Definitions:

Nationally Franchised

Businesses that operate under a licensing agreement allowing them to sell products or services under a national company's brand and operational model.

Uninformed Consumers

Consumers lacking sufficient information about products or services to make knowledgeable decisions.

Elasticity of Supply

A measure of how much the quantity supplied of a good changes in response to a change in price.

Free Rider Problem

The Free Rider Problem occurs in situations where individuals or entities benefit from resources, goods, or services without paying for them, leading to underprovision of those goods or services.