Which of the Following Statements Is True

Which of the following statements is true?

A) 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.
B) 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.
C) Both statements are true.
D) Neither of the statements is true.