A basic problem with the infant-industry argument is that:
a. most industries need protection when they are mature, not when they are first established.
b. the amount of the tariff is unlikely to have much impact on the success of an infant industry.
c. political pressure will likely prevent the withdrawal of the tariff when the industry matures.
d. domestic consumers will continue to buy the foreign products anyway, regardless of the tariff.
Question 2
Autonomous consumption is consumption that:
a. varies directly with disposable income.
b. varies inversely with disposable income.
c. is independent of the level of disposable income.
d. is constant at first and then varies with disposable income.
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