Which of the Following Is an Example of Industrial Policy

question 14

Multiple Choice

Which of the following is an example of industrial policy?

• A)Government imposing a high rate of taxes on the profits of large corporate houses
• B)Government spending more on the construction of roads and bridges than on education
• C)Government imposing a high rate of taxes on the import of goods and services
• D)Government charging lower rate of taxes on the import of goods and services
• E)Government selling imported cash crops at a subsidized rate

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Definitions:

Computing Monopoly Profit

Involves calculating the difference between a monopolist's total revenues and total costs, highlighting the profit maximization under a monopoly market structure.

Maximum Profits

The highest possible financial gain a business can achieve, calculated as total revenue minus total costs, under given market conditions and operational capacities.

Monopoly

A market structure characterized by a single seller or producer dominating the entire market, facing no competition.

Linear Demand Curve

A graphical representation that shows a straight-line relationship between the price of a good and the quantity demanded.