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 partly captured by foreign firms.
E) All of the above are problems.
E
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If a perfectly competitive firm manufacturing chairs produces 100 more chairs, what happens to the market price of a chair?
What will be an ideal response?
The Federal Reserve Banks are ________ institutions since they are owned by the ________
A) quasi-public; private commercial banks in the district where the Reserve Bank is located B) public; private commercial banks in the district where the Reserve Bank is located C) quasi-public; Board of Governors D) public; Board of Governors
Decentralizing decision rights marries authority with local knowledge. This would seem to be a good thing, but a problem that may arise is that
A. local managers may have too strong a corporate identification. B. lack of local incentives may mean that local managers do not work to maximize firm value. C. local management may conserve central management's time and effort. D. local knowledge may allow local managers to tailor prices and services to suit local needs.
Is there a multiplier effect from increases and decreases in net exports?
What will be an ideal response?