Economists believe the most persuasive argument for protectionism is to protect infant industries.But the argument has a drawback.What is this drawback?
A)Governments always make the level of protection for infant industries too high.
B)Governments are usually too impatient and do not allow protection to remain in place long enough to allow industries to be competitive in international markets.
C)Governments usually use tariffs, rather than quotas, to protect infant industries in order to collect tariff revenue. (Quotas do not result in government revenue).
D)Protection lessens the need for firms to become productive enough to compete with foreign firms; this often results in infant industries never "growing up."

Question

Quizplus · Accepted Answer

Protectionism can lead to a lack of incentive for industries to become more productive and improve efficiency, as they are shielded from competition. This can lead to these industries never growing up and remaining infant, thus ultimately hurting the economy in the long run.

Economists Believe the Most Persuasive Argument for Protectionism Is to Protect