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Protecting a Country's "Infant Industries

Question 38

Multiple Choice

Protecting a country's "infant industries"


A) leads to long-run growth in most cases because the industries are given a chance to be competitive.
B) encourages short-run competition with the protected industry so that the industry will be forced to become efficient more rapidly.
C) seems to hurt the economy in practice because consumers of that industry's products are denied access to low-cost or higher-quality imports.
D) will hurt the protected industry in the short run but generate growth for that industry in the long run.

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