The infant industry argument is based on the idea that:
a. competitive pressure from established foreign firms would encourage the infant industry's prospects for future growth.
b. failure to shelter these infant industries tends to lead to political instability.
c. small firms must be protected.
d. none of these.
d
You might also like to view...
Which of the following statements is true of the Europeans in the period of colonization?
A) Europeans set up extractive economic institutions in all areas. B) Europeans set up relatively extractive economic institutions in areas that had greater population densities. C) Europeans set up relatively inclusive economic institutions in areas that had greater population densities. D) Europeans set up inclusive economic institutions in all areas.
Which of the following are characteristics of a Perfectly Competitive Industry?
(a) Few buyers and sellers. (b) Heterogeneous products. (c) Homogeneous products. (d) Barriers to entry and exit.