Of the many arguments in favor of tariffs,the one that has enjoyed significant economic justification has been the
A) cheap foreign labor argument.
B) infant industry argument.
C) even playing field argument.
D) balance of payments argument.
E) domestic living standard argument.

Question

Quizplus · Accepted Answer

The infant industry argument suggests that new industries need protection from foreign competition through tariffs or other trade barriers until they become established and can compete on their own. This argument is based on the belief that protecting these industries will lead to job creation and economic growth in the long term. While other arguments for tariffs may also be made, the infant industry argument is the most widely accepted by economists.

Of the Many Arguments in Favor of Tariffs,the One That