What is the infant-industry argument for protection from international trade?
A) Domestic firms must be protected until they gain a comparative advantage.
B) Any firm necessary in wartime must be protected.
C) Foreign producers selling below cost to drive domestic firms bankrupt must be stopped.
D) Domestic jobs must be protected from competition from low-paid foreign workers.
E) Foreigners selling products in the economy limit the nation's diversity and stability.
Question 2
Refer to the scenario above. Alice will earn an expected surplus of ________ if she uses her optimal strategy to win the game.
A) 5,000
B) 6,000
C) 30,000
D) 16,000
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