The national security argument for protection is more likely to be valid when ?
Correct answer: D. The protected industry provides invaluable goods during periods of war
- A. The purpose is to maintain protection for an indefinite time period
- B. The industry is characterized by increasing returns to scale
- C. The economy operates during a recession
- D. The protected industry provides invaluable goods during periods of war
Explanation
The national-security argument is strongest for industries supplying essential goods during war, such as defence equipment or strategic materials. Indefinite protection is not automatically justified, and recession or scale economies are different arguments.
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