A Problem Associated with Import Substitution as an Industrial Policy

question 58

Multiple Choice

A problem associated with import substitution as an industrial policy is:

• A) it removes the incentive for industries to be efficient.
• B) industries are often chosen for political, 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 policy.

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Definitions:

Manipulating

The process of altering variables in an experimental setting to determine their effects on dependent variables.

Variables

Elements, factors, or conditions that can change and affect the outcomes of experiments and studies in various fields, especially in research and statistics.

Dependent Variable

The variable being tested and measured in an experiment, which is expected to change as a result of manipulations of the independent variable.

Industrial Designer

A professional who develops concepts and designs for manufactured products, focusing on aesthetics, functionality, and usability.