Multiple Choice
An assumption behind the infant-industry argument for tariff protection is that
A) foreign competitors are selling output below average cost.
B) the domestic industry will be facing an upward adjustment in its average cost.
C) the domestic industry will eventually gain a comparative advantage in producing the good.
D) the market needs additional competition to satisfy consumer demand.
Correct Answer:

Verified
Correct Answer:
Verified
Q192: During 2005-2006 Europe imported more than $70
Q193: If the United States imposes a tariff
Q194: Using calculations of the cost to Americans
Q195: Import quotas<br>A) encourage freer trade.<br>B) are a
Q196: Suppose the country of Mooland imposes tariffs
Q198: Which of the following statements about U.S.
Q199: A U.S. tariff on textiles would _
Q200: As a result of an increase in
Q201: The gains from free trade are enjoyed
Q202: _ occurs when a foreign firm sells