The infant industry argument:
A)is based on the belief that protecting industries when they are young will pay off later
B)is based on the belief that protecting industries producing goods and services for infants is necessary if a country is to have healthy children
C)has the support of most economists
D)has proven to be correct in nearly all cases

Question

Quizplus · Accepted Answer

The infant industry argument suggests that protecting young industries can be beneficial in the long run as they have the potential to become mature, competitive industries in the future. This argument is based on the belief that temporary protection can help balance the playing field between domestic and foreign competitors until the industry can establish itself and become more efficient, making it capable of competing without protection. While the argument has some support among economists, it also has critics who believe that it can lead to inefficiencies and rent-seeking behavior by protected industries. Additionally, not all examples of infant industry protection have been successful, leading some to question its effectiveness in practice.

The Infant Industry Argument