A tariff increases a. the quantity of imports. b. the ability of foreign goods to compete with domestic goods. c. the prices of imports to domestic buyers. d. all of the above.

The infant industry argument for protectionism is based on which of the following views? a. Foreign buyers will absorb all of the output of domestic producers in a new industry. b. The growth of an industry that is new to a nation will be too rapid unless trade restrictions are imposed. c. Firms in a newly developing domestic industry will have difficulty growing if they face strong competition from established foreign firms. d. It is based on none of the above