Which of the Following Statements Reflects the Belief of the Critics

question 103

Multiple Choice

Which of the following statements reflects the belief of the critics of industrial policy?

• A)The government allocates scarce resources more efficiently than markets.
• B)Industrial policy could evolve into a government giveaway program.
• C)Industrial policy gives domestic industries a competitive advantage over important trading partners.
• D)Industrial policy encourages unfavorable terms of trade with foreign countries.
• E)Industrial policy overprotects the domestic producers.

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Definitions:

Actual Cause

Refers to the genuine reason that directly leads to an outcome or event, establishing a clear link between an action and its effect.

Res Ipsa Loquitur

A doctrine in tort law that allows the presumption of negligence by the defendant where the accident could not have happened without negligence and the instrument of injury was under the defendant's control.

Negligence

The failure to exercise the care that a reasonably prudent person would exercise in like circumstances, leading to unintended harm.

Proximate Cause

A legal concept that identifies the primary cause of damage or injury in a negligence lawsuit, determining the extent of a defendant's liability.