Invalid Economic Argument for Protectionism

Steps:

• Recall protectionism involves tariffs or quotas to shield domestic industries from foreign competition.
• Evaluate each option against standard economic theories like comparative advantage and free trade benefits.
• Identify arguments with theoretical support (e.g., infant industry, anti-dumping) versus those contradicting overall welfare gains.
• Select the option lacking economic validity, as free trade maximizes global efficiency.

Why D is correct:

• Protectionism raises prices and distorts resource allocation, creating deadweight loss that reduces overall standard of living per Ricardo's comparative advantage theory.

Why the others are wrong:

• A: Valid under infant industry argument, allowing new sectors time to achieve economies of scale and efficiency.
• B: Valid as countervailing measures against foreign subsidies to ensure fair competition.
• C: Valid for temporary adjustment, enabling worker retraining and minimizing short-term unemployment costs.

Final answer: D