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Which of the Following Is True with Respect to the Infant-Industry

Question 6

Multiple Choice

Which of the following is true with respect to the infant-industry argument for protection:


A) it refers to temporary protection to establish a domestic industry
B) to be valid,the return to the grown-up industry must be sufficiently high also to repay for the higher prices paid by domestic consumers of the commodity during
The infancy period
C) is inferior to an equivalent production subsidy to the infant industry
D) all of the above

Correct Answer:

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