Economists Believe the Most Persuasive Argument for Protectionism Is to Protect

question 26

Multiple Choice

Economists believe the most persuasive argument for protectionism is to protect infant industries.But the argument has a drawback.What is this drawback?

• A)Governments always make the level of protection for infant industries too high.
• B)Governments are usually too impatient and do not allow protection to remain in place long enough to allow industries to be competitive in international markets.
• C)Governments usually use tariffs, rather than quotas, to protect infant industries in order to collect tariff revenue. (Quotas do not result in government revenue).
• D)Protection lessens the need for firms to become productive enough to compete with foreign firms; this often results in infant industries never "growing up."

---

Definitions:

Producing

The act of creating, manufacturing, or generating goods or services.

Chairs

Chairs are pieces of furniture designed to provide a place to sit, typically consisting of a seat, legs, back, and sometimes armrests, used in a variety of settings from homes to offices.

Couches

Upholstered pieces of furniture designed for seating multiple people, commonly used in living spaces for comfort and relaxation.

Rate Of Trade-off

The rate at which one good or service must be sacrificed to produce an additional unit of another good or service, often related to the concept of opportunity cost.