Author Question: Explain why industrial policies are controversial. What will be an ideal ... (Read 29 times)

storky111 · **on:** Jun 30, 2018

Explain why industrial policies are controversial.

What will be an ideal response?

Question 2

The high-growth Asian economies have been more open to imports than most developing countries.

Indicate whether the statement is true or false

mmj22343 · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

In some cases, they end up wasting large sums of money. It is difficult to know what the best industries to promote are, and so government resources may not be used effectively. Better outcomes may be achieved by simply providing the basic components of a well-functioning economy, including education, stable institutions, and sound macroeconomic policies. Additionally, there are a number of problems such as the difficulty of measure the size of market failures and rent seeking.

Answer to Question 2

TRUE