Which of the following is an example of industrial policy?
A)Government imposing a high rate of taxes on the profits of large corporate houses
B)Government spending more on the construction of roads and bridges than on education
C)Government imposing a high rate of taxes on the import of goods and services
D)Government charging lower rate of taxes on the import of goods and services
E)Government selling imported cash crops at a subsidized rate

Question

Quizplus · Accepted Answer

Industrial policy refers to the set of measures taken by the government to promote the growth and development of industrial sectors in the economy. Imposing a high rate of taxes on the import of goods and services is an example of industrial policy as it aims to protect domestic industries by making foreign goods less expensive and less competitive in the domestic market. This helps to promote local production and encourages domestic industries to grow and compete with foreign companies.

Which of the Following Is an Example of Industrial Policy