What Is a Problem Associated with Import Substitution as an Industrial

question 9

Multiple Choice

What is a problem associated with import substitution as an industrial policy?

• A) It removes the incentive for industries to be efficient.
• B) Industries are often chosen for political, and not economic, reasons.
• C) It often stays in place long after it was expected to lapse.
• D) All of these are problems associated with import substitution.

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Definitions:

Semi-Annual Coupon

A type of bond payment made twice a year to bondholders, representing interest payments on the bond's face value.

Yield To Maturity

The total expected return on a bond if held until its maturity date, taking into account both the interest payments and any gain or loss if the bond was purchased at a discount or premium.

Newspaper

A printed publication consisting of news articles, editorials, and advertisements, typically published daily or weekly.

Real Rate Of Return

A yearly rate of return on an investment, corrected for inflationary changes or other external conditions affecting the price level.