The criterion that an infant industry must eventually generate welfare gains that exceed the initial costs of protection, all properly discounted, is known as:
A) the Bastable test.
B) the Smith test.
C) the Mill test.
D) the First test.

Question

Quizplus · Accepted Answer

The Bastable test is the criterion that requires an infant industry to eventually generate welfare gains that exceed the initial costs of protection, all properly discounted. This test is used to justify the temporary protection of emerging industries under certain conditions.

The Criterion That an Infant Industry Must Eventually Generate Welfare