Industrial Policy Seeks to Direct Resources to Declining Industries in Which

question 118

True/False

Industrial policy seeks to direct resources to declining industries in which productivity is low, linkages to the rest of the economy are weak, and future competitiveness is remote.

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Definitions:

Old Northwest

Refers to the region of the United States northwest of the Ohio River, which was acquired through the Treaty of Paris in 1783 and organized under the Northwest Ordinance of 1787.

Interchangeable Parts

Interchangeable parts are components that are made to specifications that ensure they are so nearly identical that they will fit into any assembly of the same type, reducing manufacturing complexity and allowing for easier repair of mechanical systems.

Labor Surplus

A situation in which the supply of workers exceeds the demand for their services, often leading to unemployment and lower wages.

Economic Depression

A long-term downturn in economic activity characterized by high unemployment, low consumer spending, and business failures.