Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) The infant-industry argument is valid only if the benefits of learning-by-doing in the infant industry spill over to other parts of the economy.
B) A subsidy to an infant industry is a more efficient way to protect it from foreign competition than a tariff on the competing foreign goods.
C) Both statements are true.
D) Neither of the statements is true.