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 the domestic producers.
b
Economics
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a. True b. False Indicate whether the statement is true or false
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Which of the following is NOT an artificial barrier to entry?
A. a patent B. government franchise C. large economies of scale D. government licensing
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