The Infant-Industry Argument for Protection Is Based on the Idea

question 151

Multiple Choice

The infant-industry argument for protection is based on the idea of

• A) learning-by-doing.
• B) dumping.
• C) absolute advantage.
• D) quotas are the least harmful method of protecting domestic firms.
• E) saving jobs in the U.S. economy.

---

Definitions:

Finance Assets

Financial assets specifically purchased, created, or held for the purpose of generating income through investment or lending activities.

Financial Leverage

The use of borrowed funds with a fixed cost in order to increase the potential return to shareholders.

Incremental

Relating to or denoting an increase or addition, especially one of a series on a fixed scale.

After-tax Cost

The cost of financing or an expense after accounting for the effects of income tax, often used to compare the true costs of financing options.