In international trade, an infant industry is one:
A. that protects firms that produce products for infants.
B. with a large number of very small firms.
C. in which the firms are experiencing very small profits.
D. in the early stages of its development.
Answer: D
Economics
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A) tax distortions B) people can borrow from the government. C) finite-lived people. D) credit market imperfections.
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What is meant by the term "government-imposed barrier to entry"? Why would a government be willing to impose barriers to entering an industry?
What will be an ideal response?
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