A Problem with the Infant Industry Argument Is That

question 36

Multiple Choice

A problem with the infant industry argument is that

• A) it is too restrictive in targeting new industries to protect.
• B) it does not protect the most important new industries in a country.
• C) it is almost impossible to eliminate the tariff once the industry matures.
• D) it allows infant industries to mature so that tariffs can be eliminated.

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Definitions:

Minimum Group Size

The smallest number of individuals required to form a group capable of achieving its objectives or exhibiting characteristics of group dynamics.

Poor Decisions

Choices or judgments that result in negative outcomes, often due to factors such as lack of information, incorrect assessment, or cognitive biases.

Competition

A situation in which individuals or groups strive against one another to achieve a goal that cannot be shared or to attain a superior position.

Conflict

A situation of disagreement or dispute between parties with perceived incompatible goals, needs, or desires.