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The Infant Industry Argument

Question 20

Multiple Choice

The infant industry argument:


A) justifies eliminating tariffs and opening up a country to free trade.
B) allows the buy up of a smaller producers by a larger producer, thereby increasing economies of scale.
C) recognizes that some industries, even if they are small, are necessary for national security and should always be protected and subsidized.
D) protects new industries from foreign competition.

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