A problem with the infant industry argument is that
A) it is too restrictive in targeting new industries to protect.
B) it does not protect the most important new industries in a country.
C) it is almost impossible to eliminate the tariff once the industry matures.
D) it allows infant industries to mature so that tariffs can be eliminated.

Question

Quizplus · Accepted Answer

The problem with the infant industry argument is that it is almost impossible to eliminate the tariff once the industry matures. This can lead to inefficient allocation of resources, as protected industries may continue to receive support even if they are no longer necessary or viable.

A Problem with the Infant Industry Argument Is That