The infant industry argument, which was proposed about 20 years after the publication of The Wealth of Nations, continues to be used today. In case after case where industries were protected by governments using high tariffs:

Which of the following best describes the economic effect that results from the government having a budget surplus? a. consumers save more and spend less, enabling long-term financial planning. b. overall demand decreases, reducing the incentive for producers to increase production. c. banks have more deposits, enabling them to make more loans to investors. d. government spending increases, increasing competition for goods and services and driving prices up.