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Industry Policy - Efficiency

   Promoting efficiency is the primary economic rationale given for industrial policy. As we've noted in other contexts, efficiency may not be the only goal that a society wishes to pursue, but it certainly is important to any society.

    Inefficiency means wasted resources, higher prices, increased unemployment, more pollution and reduced economic well-being. In this context we will focus on three types of efficiency: technical, productive, and allocative efficiency.

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