If the Infant Industry Argument Is Used to Protect an Industry

question 18

Multiple Choice

If the infant industry argument is used to protect an industry that has already matured, then

• A) consumers lose because they will pay a price for a product that is above the world price.
• B) consumers lose because they will pay a price for a product, which is less than the world price.
• C) stockholders lose because the firm cannot compete with other firms.
• D) no one loses.

---

Definitions:

Patient Protection and Affordable Care Act (PPACA)

A federal law enacted in 2010 aimed at reducing healthcare costs and increasing health insurance coverage among Americans.

Personal Mandate

The requirement under the Patient Protection and Affordable Care Act (PPACA) of 2010 that all U.S. citizens and legal residents purchase health insurance unless they are already covered by employer-sponsored health insurance or government-sponsored health insurance (Medicaid or Medicare).

Government-provided Health Insurance

Health insurance schemes funded and managed by the government to offer medical coverage to its citizens.

Insurance Exchanges

Government-regulated markets for health insurance in which individuals seeking to purchase health insurance to comply with the personal mandate of the Patient Protection and Affordable Care Act (PPACA) of 2010 will be able to comparison shop among insurance policies approved by regulators. Each state will have its own exchange.