asked 66.2k views
3 votes
The video shows that the German government promotes desirable industries such as the solar power industry. This is an example of which of the following?

a) Laissez-faire economics
b) Command economy
c) Market-oriented industrial policies
d) Protectionism

asked
User Nilgun
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8.5k points

1 Answer

2 votes

Final answer:

The German government's promotion of the solar power industry is an example of market-oriented industrial policies, involving strategic government support for selected sectors rather than protectionist measures or a laissez-faire approach.

Step-by-step explanation:

The video shows that the German government promotes desirable industries such as the solar power industry. This government action is not an example of laissez-faire economics, which advocates a hands-off approach, nor is it a command economy where the government makes all decisions regarding production and prices. Instead, it is an example of market-oriented industrial policies. These policies are a strategic effort by the government to foster the development of certain sectors of the economy through methods such as subsidies, loans, targeted tax reductions, and support for research and development. This approach differs from protectionism, which primarily involves measures like import restrictions to shield domestic industries from foreign competition.

answered
User Kajo
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7.8k points
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