Suppose there is a policy debate regarding the United States’ imposing trade restrictions on imported ball bearings.
Domestic producers of ball bearings send a lobbyist to the U.S. government to request that the government impose trade restrictions on imports of ball bearings. The lobbyist claims that the U.S. ball-bearing industry is new and cannot currently compete with foreign firms. However, if trade restrictions were temporarily imposed on ball bearings, the domestic ball-bearing industry could mature and adjust and would eventually be able to compete in the world market.
Which of the following justifications is the lobbyist using to argue for the trade restriction on ball bearings?
A. Jobs argument
B. National-security argument
C. Unfair-competition argument
D. Infant-industry argument
E. Using-protection-as-a-bargaining-chip argument
Ans: D. Infant-industry argument
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In the figure above, the natural unemployment rate is
A) 6 percent. B) 0 percent. C) 8 percent. D) 4 percent. E) 2 percent.
In the above figure, a change in autonomous consumption to 100 would cause the consumption function to
A) become steeper. B) become flatter. C) shift down. D) shift up.
Civil law provides business with more certainty because it is based on precedent
a. True b. False
The interest rate changes that result from the FOMC meetings:
A. can only be altered during a time of crisis by the U.S. President. B. cannot be changed by anyone other than the FOMC. C. can be altered only by Congress. D. can be altered by the Secretary of the Treasury during an economic crisis.