Which of the Following Is NOT a Problem in the Implementation

question 17

Multiple Choice

Which of the following is NOT a problem in the implementation of industrial policies?

• A)Choosing the industry to target
• B)Knowing the optimum amount of resources to provide the targeted industry
• C)The encouragement of rent seeking by firms in other industries
• D)The benefits are captured only by domestic firms.

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Definitions:

Short-term Speculation

Financial transactions or investments made with the expectation of significant returns in a short period, often characterized by high risk.

Available-for-sale Debt Portfolio

Debt securities that are not classified as held-to-maturity or trading securities, and can be sold in response to needs for liquidity or changes in interest rates.

Unrealized Loss

A loss that results from holding onto an asset that has decreased in value, but has not yet been sold or liquidated.

Amortized Cost Basis

A valuation method for certain investments that smooths out returns over the life of the investment, taking into account amortization or accretion adjustments.