Which of the Following Statements Reflects the Belief of the Critics

Multiple Choice

Which of the following statements reflects the belief of the critics of industrial policy?

A) The government allocates scarce resources more efficiently than markets.
B) Industrial policy could evolve into a government giveaway program.
C) Industrial policy gives domestic industries a competitive advantage over important trading partners.
D) Industrial policy encourages unfavorable terms of trade with foreign countries.
E) Industrial policy overprotects domestic producers.