Over the long run, protecting a domestic industry using a high tariff is likely to new products and production methods, thus making it to compete in the global marketplace.

Question

Quizplus · Accepted Answer

By protecting a domestic industry with a high tariff, there is less incentive for the industry to innovate and develop new products and production methods. This can lead to the industry becoming less able to compete in the global marketplace over time. Therefore, the best choice is B, which states that protecting the industry with a high tariff is likely to discourage it from developing and make it less able to compete.

Over the Long Run, Protecting a Domestic Industry Using a High