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GCE Economics 1989 Question 36

Question 36

Industrialisation

Which of these does not encourage industrial development?

  1. A.Tax exemption
  2. B.Provision of financial institutions
  3. C.Provision of infrastructural facilities
  4. D.Limitation of market for industrial products
  5. E.Government direct participation.
Show the answer and explanation

Answer: D (Limitation of market for industrial products)

Explanation

A limited market means firms cannot sell more output, so it discourages industrial growth.