In Terms of Industrial Policy, Clusters Refer To

question 10

Multiple Choice

In terms of industrial policy, clusters refer to:

• A) networks of interdependent firms, universities, and businesses that focus on production of a specific type of good.
• B) firms in an economy that are so interconnected, when one fails, they all fail.
• C) the industries supported in a country practicing export-led growth policy.
• D) the industries supported in a country practicing import substitution policy.

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Definitions:

Stripped Common Shares

Common stock on which dividends and capital gains are repackaged and sold separately.

Dividends

Payments made by a corporation to its shareholders, usually derived from the company's profits, as a reward for investing in the company's equity.

Capital Gains

Capital Gains are the profits realized from the sale of assets such as stocks, bonds, or real estate, which exceed the purchase costs.

Stock Split

A corporate action that increases the number of shares outstanding by issuing more shares to current shareholders.