For infant industry tariff protection to be valid requires that
A) the tariff must be allowed to last forever.
B) only industries that currently are producing efficiently should be protected.
C) government officials must predict which industries will eventually be able to compete with more established foreign producers.
D) the industries protected must have substantial monopoly power in the absence of foreign competition.
Answer: C
You might also like to view...
The supply of labor in the classical system is a function of the
a. marginal product of labor. b. real wage. c. the public's preference for leisure. d. money wage. e. b and c
One explanation that economists give for the persistence of poverty in LDCs falls under the category of nonscientific perceptions. An example of this is people in LDCs who
a. are unwilling to devote their energies to intellectual pursuits b. don't share the values associated with the means to acquire or the acquisition of the materialist world commonly identified with Westerners c. are not rational, utility-maximizing, economic agents d. value their children e. because of climate, require a lower calorie diet to survive
A person who voluntarily quits their job in New York and expects to get a similar job in Los Angeles is an example of
If resource prices are fixed and the product selling price rises, then
a. profits will decrease. b. profits will increase. c. profits will remain constant. d. both profits and output will decrease.