The term industrial policy refers to _____
A) policies that industries develop to promote growth.
B) policies related to marketing strategies.
C) the illegal activities that firms sometimes engage in to reduce competition.
D) government policy that aims at enhancing the competitiveness of domestic firms.
E) government policy that primarily aims at protecting domestic jobs.

Question

Quizplus · Accepted Answer

Industrial policy refers to government policies aimed at enhancing the competitiveness of domestic firms. Industrial policies can include measures such as subsidies, tax incentives, and investment in research and development that are designed to create a favorable business climate for domestic firms and to address market failures that discourage private sector investment. The ultimate goal of industrial policy is to create sustained economic growth and to increase the standard of living of citizens by promoting the growth of competitive firms that can generate wealth and create jobs.

The Term Industrial Policy Refers to _____