The "Infant Industry" Argument for Tariffs Is Criticized

question 122

Multiple Choice

The "infant industry" argument for tariffs is criticized:

• A)because it is difficult to determine which industries merit protection.
• B)because direct subsidies are probably a better means of stimulating such industries.
• C)because the tariffs may remain after the industry reaches maturity.
• D)for all of the above reasons.

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Definitions:

Producers

Organisms, typically plants or algae, that produce organic compounds from simple substances such as carbon dioxide, serving as a base for all food chains.

Control Group

Of an experiment, group of individuals identical to an experimental group except for the independent variable under investigation.

Experimental Group

In an experiment, group of individuals who have a certain characteristic or receive a certain treatment as compared with a control group.

Inductive Reasoning

A method of reasoning in which general principles are inferred from specific observations.