If supporters of restrictions on imports argue that protection is needed to preserve a strategic industry, which of the following is being used?
A) Protecting national culture argument
B) Infant-industry argument
C) Save domestic jobs argument
D) National security argument
E) Dumping argument
D
You might also like to view...
The economic way of thinking would approach the question "Is this industry competitive?" by
A) counting the number of firms in the industry. B) comparing the ratio of prices to costs across the industry. C) assessing the freedom of entry into the industry. D) evaluating the actual structure of the industry to the competitive standards articulated in antitrust legislation.
Two countries will have zero incentive to trade if their production possibilities curves are parallel straight lines because
A. One country has an absolute advantage in the production of both goods, thus providing that country with no incentive for trade. B. The opportunity costs for both countries are the same. C. One country has a comparative advantage in the production of both goods, thus providing that country with no incentive for trade. D. An intersection of the two lines is not possible, and therefore a trade equilibrium is not possible.