A Policy Aimed at Promoting the Development of Specific Industries

question 162

Multiple Choice

A policy aimed at promoting the development of specific industries within a country that may increase domestic welfare through trade with the rest of the world is known as a(n) :

• A) infant-industry policy.
• B) key-industry policy.
• C) strategic trade policy.
• D) welfare-trade policy.

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Definitions:

Forward Contract

A financial contract between two parties to buy or sell an asset at a specified future time at a price agreed upon at the contract's inception.

Settlement Date

The date on which a trade (purchase or sale of securities) is finalized, and the buyer must make payment while the seller delivers the securities.

Zero Sum Game

A situation in finance or economics where each participant's gain or loss is exactly balanced by the losses or gains of the other participants.

American Call Option

An option contract that gives the holder the right, but not the obligation, to buy an underlying asset at a specified price within a set period, anytime until the contract's expiration.