If the Infant Industry Argument Is Used to Justify Protecting

question 186

Multiple Choice

If the infant industry argument is used to justify protecting an industry that has already matured, then:

• A) consumers will lose because the price they will pay is less than the world price.
• B) consumers will lose because the price they will pay is greater than the world price.
• C) no one loses.
• D) stockholders lose because the firms in that industry cannot compete with other firms.

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Definitions:

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Concepts or perceptions that exist because people in a society agree to behave as if they exist or agree that they hold a certain meaning.

Racial Categorization

The process of classifying people into groups based on physical characteristics, such as skin color, often leading to social and economic inequalities.

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The judgments, rulings, or orders issued by a court of law regarding the outcome of legal cases.

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