Which of the Following Statements Reflects the Belief of the Critics

question 7

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 domestic producers.