One problem with industrial policies is that
A) R&D only benefits the firm that conducts it.
B) governments usually target the wrong industries.
C) it is difficult to measure the extent of market failure.
D) it is not politically popular to support industries.
Question 2
In general, the relationship between democracy and economic growth as demonstrated by the high-growth Asian economies is that
A) democratic nations grow faster than undemocratic nations.
B) democratic nations grow slower than undemocratic nations.
C) there does not seem to be a relationship between democracy and economic growth.
D) democracies are much more variable in their rates of growth than undemocratic nations.
