The key industries argument for trade restrictions relies on the notion that:
A) economies of scale are easier to achieve in exporting industries.
B) products with inelastic supply are the major source for job creation.
C) some industries deserve protection because they provide positive spillover effects to the rest of the economy.
D) war may disrupt trade flows.

Question

Quizplus · Accepted Answer

The key industries argument for trade restrictions is based on the idea that some industries provide positive externalities, such as increased innovation or knowledge spillovers, to the rest of the economy. Therefore, these industries should be protected through trade restrictions to ensure their continued growth and presence in the domestic market.

The Key Industries Argument for Trade Restrictions Relies on the Notion