Question

If a country imposes a tariff on imported cars because the government is particularly concerned about the incomes of auto workers over the incomes of other American workers, it is probably using the ____ argument for protectionism.

Answer 1

Answer:

The correct word for the blank space is: Infant-Industry.

Explanation:

Proposed by Alexander Hamilton (1757-1804) and Friedrich List (1789-1846) the Infant-Industry argument for protectionism is a position a country takes by imposing duties, tariffs or quotas to import products so the domestic industry can be protected. This argument proposes the levies must be imposed at least until the domestic industries competing with the import products mature.