What is the belief with industrial policy
A)Industries yielding the largest positive externalities should receive the biggest subsidies.
B)Any industry that produces negative externalities should be heavily taxed.
C)Industries with the largest political clout should receive the biggest subsidies.
D)Any industry that produces a positive externality should be encouraged with subsidies.

Question

Quizplus · Accepted Answer

The belief with industrial policy is that industries yielding the largest positive externalities should receive the biggest subsidies. Positive externalities are benefits to society that are not reflected in the prices of goods or services. Subsidies for such industries help to incentivize their growth and enhance their positive impact on society.

What Is the Belief with Industrial Policy