Which of the following is the most accurate statement?
A)The one argument for restricting trade that almost all economists accept as valid is the infant-industry argument.
B)Almost all economists insist that it is never appropriate to protect "key" industries, even when there are legitimate concerns about national security.
C)The idea that one nation might want to threaten another nation with a trade restriction is associated with the protection-as-a-bargaining-chip argument for restricting trade.
D)The protection-as-a-bargaining-chip argument for restricting trade is also known as the infant-industry argument.

Question

Quizplus · Accepted Answer

The statement that "The idea that one nation might want to threaten another nation with a trade restriction is associated with the protection-as-a-bargaining-chip argument for restricting trade" is the most accurate statement among the choices given. Option A is false as not all economists accept the infant-industry argument. Option B is false as there can be exceptions for national security concerns. Option D is false because the protection-as-a-bargaining-chip argument is different from the infant-industry argument.

Which of the Following Is the Most Accurate Statement