Economics · International Trade
Consider the following statements regarding the 'Infant Industry Argument' for protection: 1. It is advocated on the grounds that temporary protection allows nascent domestic industries to achieve economies of scale and become internationally competitive. 2. John Stuart Mill and Friedrich List are among the classical economists who advanced versions of this argument. 3. The optimal policy instrument for supporting an infant industry is always a tariff, as it also generates government revenue. Which of the above statements is/are correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 11, 2, and 3
- 22 and 3 only
- 31 and 2 only✓
- 41 only
Correct answer
1 and 2 only
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