The most efficient way to encourage the growth of an infant-industry is through a
A) voluntary export restraint.
B) tariff.
C) an import quota.
D) subsidy.

Question

Quizplus · Accepted Answer

A subsidy would provide direct financial support to the infant-industry, allowing it to compete with established industries. Tariffs, quotas, and voluntary export restraints may provide protections, but they also increase prices for consumers and can limit competition, which may not be sustainable in the long run.

The Most Efficient Way to Encourage the Growth of an Infant-Industry