Which of the following describes the infant industry argument for protectionism?
A) An industry must be protected in its early stages of development so that firms can compete with government-subsidized foreign competition.
B) Some strategic industries must be protected to ensure adequate supplies of resources needed for national defense in emergencies.
C) Domestic producers in high-wage countries must be protected from foreign producers in low-wage countries to produce a level playing field.
D) Domestic producers require time to gain experience and lower their unit costs; this will allow these producers to compete successfully in international markets.
Answer: D
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LeBron James, a prominent basketball player, is considering signing on for another two years with his current team. The team managers, however, face a salary cap of $90 million for their team and have already contracted players for a total of $75 million. James, used to earning $20 million a year, has been offered to play for $15 million this year and $27 million in his second year. The current interest rate is 6.5%. Should he agree to the contract?
What will be an ideal response?
Congestion pricing
A. is a tax. B. keeps nasal passages clear. C. is never efficient. D. all of these answer options are correct.