Which of the following is an example of a tool of industrial policy?
A) subsidies to industry
B) forced savings of households
C) allowing the market to allocate resources
D) active monetary policy

Question

Which of the following is an example of a tool of industrial policy?  
A) subsidies to industry 
B) forced savings of households 
C) allowing the market to allocate resources 
D) active monetary policy

Quizplus · Accepted Answer

Subsidies to industry are a tool of industrial policy as they involve government support to certain industries or companies to encourage growth and development. Forced savings of households, allowing the market to allocate resources, and active monetary policy are not specific tools of industrial policy.

Which of the Following Is an Example of a Tool