Which Statement Is TRUE

question 103

Multiple Choice

Which statement is TRUE?

• A) Import restrictions may be the best policy if production in certain industries generates positive spillover effects to other industries.
• B) It is usually easy to identify industries that generate positive spillover effects.
• C) It would be more efficient to subsidize industries that generate positive spillover effects than to implement import restrictions.
• D) Spillover effects from Silicon Valley were the biggest factor leading to increases in productivity in the 1990s.

---

Definitions:

World Trade Organization

An international organization designed to supervise and liberalize world trade, by providing a forum for trade negotiations and dispute resolutions.

Intellectual Property

Legally recognized exclusive rights to creations of the mind, such as inventions, literary and artistic works, designs, symbols, names, and images.

U.K. Bribery Act

A law passed by the United Kingdom in 2010, designed to combat bribery and corruption in both the public and private sectors.

Foreign Corrupt Practices Act

A United States law that prohibits U.S. companies and their employees from bribing foreign officials for business purposes.