Question

How do tariffs work to protect infant industries?

a. they reduce sales taxes for introductory products.
b. they shield new industries in the early stages of their development from the competition of more mature rivals.
c. they raise the trade barriers for imports of child-care products.
d. they increase competition for a new business, forcing it to be more productive.

Answer 1

The answer is:

b. They shield new industries in the early stages of their development from the competition of more mature rivals.

Answer 2

Tariffs shield new industries in the early stages of their development from the competition of more mature rivals.