The infant industry argument has a normative economic basis because
A) clearly, all industries need to be protected.
B) protected industries are selected on a factual basis.
C) the government must decide which industries should be protected.
D) political corruption is the only deciding factor.

Question

Quizplus · Accepted Answer

The infant industry argument is normative because it involves value judgments about which industries should receive government protection to develop and compete internationally. This decision-making process is inherently subjective and involves government discretion.

The Infant Industry Argument Has a Normative Economic Basis Because