Which of the Following Statements Concerning the Infant Industry Argument

question 218

Multiple Choice

Which of the following statements concerning the infant industry argument is NOT correct?

• A) The management and workers in an infant industry may be too inexperienced to compete in world markets.
• B) Infant industry protection tends to focus on labor-intensive industries.
• C) Infant industry protection is difficult to remove after the industry has matured.
• D) An infant industry is too underdeveloped to achieve comparative advantage.

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Definitions:

General Journal

A primary accounting record used to record all types of accounting transactions including both debits and credits.

Ledger

A book or collection of financial accounts.

Trial Balance

A bookkeeping report that lists the balances of all ledgers accounts in order to verify that debits equal credits.

Prepaid Expenses

Upfront costs incurred for items or services that are to be obtained in the upcoming time.