Protection provided to the infant industries is rarely withdrawn because:
a. the costs of withdrawing protection outweigh the benefits.
b. the industries begin to experience diseconomies of scale.
c. it leads to a loss of government revenue.
d. the industries produce goods which are close substitutes of the imported goods.
e. the larger and more successful the industry becomes, the more political power it wields.
e
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According to this Application, three economists that studied data from the countries in the OECD found the value of the multiplier to be
A) 1.3. B) 2.3. C) 3.3. D) 4.3.
Federally provided agricultural subsidies in the United States have ________ with the passage of the 2002 Farm Security Act and the 2007 Food, Security, and Bioenergy Act
A) been abolished B) been maintained C) increased to the level of EU price supports D) been made a function of tax revenues