For Infant Industry Tariff Protection to Be Valid Requires That

question 21

Multiple Choice

For infant industry tariff protection to be valid requires that

• A) the tariff must be allowed to last forever.
• B) only industries that currently are producing efficiently should be protected.
• C) government officials must predict which industries will eventually be able to compete with more established foreign producers.
• D) the industries protected must have substantial monopoly power in the absence of foreign competition.

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Definitions:

Unilateral Emphysema

A condition where one lung is affected by emphysema, a form of chronic lung disease causing breathlessness due to over-inflated alveoli.

Bronchiolectasis

A condition involving the permanent enlargement and damage of the bronchioles, the small airways in the lungs, often leading to infection and respiratory problems.

Environmental Tobacco Smoke

Smoke from burning tobacco products and smoke exhaled by smokers, also known as secondhand smoke.

Equilibrium Quantity

The quantity of goods or services supplied and demanded at the equilibrium price, where supply equals demand.