One Drawback to Industrial Policy Is That

question 352

Multiple Choice

One drawback to industrial policy is that

• A)technology spillovers are too expensive to control.
• B)measuring the size of spillovers from different markets is difficult.
• C)spillovers often occur in industries that produce undesirable products for society.
• D)positive side effects are often outweighed by negative side effects.

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Definitions:

Payroll Tax Expense

Payroll tax expense refers to the taxes that employers are required to pay on behalf of their employees, such as Social Security and Medicare taxes in the United States.

Estimated Warranty Costs

The projected expenses a company expects to incur for repairing or replacing products under warranty.

Warranty Contracts

Agreements that guarantee the repair or replacement of a product within a specified time period if it fails to meet outlined conditions.

Contingent Liability

A potential obligation that may arise in the future, dependent on the occurrence of a specific event.