A Problem Encountered When Implementing an "Infant Industry" Tariff Is

question 45

Multiple Choice

A problem encountered when implementing an "infant industry" tariff is that:

• A) Domestic consumers will purchase the foreign good regardless of the tariff
• B) Political pressure may prevent the tariff's removal when the industry matures
• C) Most industries require tariff protection when they are mature
• D) Labor unions will capture the protective effect in higher wages

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Definitions:

Demographic Transition

A theory describing the transition from high birth and death rates to low birth and death rates as a country develops from a pre-industrial to an industrialized economic system.

Marx

Karl Marx, a 19th-century philosopher and economist known for his theories about capitalism, class struggle, and the development of socialist and communist societies.

Overpopulation

A condition where an organism's numbers exceed the carrying capacity of its habitat, often leading to environmental deterioration and a decline in living conditions.