A possible downside of industrial policy is that
A)the government cannot be trusted to identify emerging technologies
B)markets allocate scarce resources better than governments do
C)it could evolve into a government giveaway program
D)money and competitive advantages could go to the politically connected
E)All of the answers are correct

Question

Quizplus · Accepted Answer

All of the answers are correct. Industrial policy can lead to government inefficiency in identifying emerging technologies, market distortion, political favoritism, and the possibility of becoming a government giveaway program.

A Possible Downside of Industrial Policy Is That