Krugman_TB_ch11

E oneoftheabove n answer c questionstatus

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Unformatted text preview: t and technological factors. E) one of the above. N Answer: A Question Status: revious Edition P 3 16) he argument that strategic planning is not likely to be practical due to insufficient information means that T A) ecause of trade secrets, the government does not know true cost relationships in any given industry. b B) f the government had all the relevant information in a given industry then it could decide whether a i subsidy would enhance the publicʹs welfare. C) ven if the government had all the relevant information in a given industry, it still could not decide e whether a subsidy would enhance the publicʹs welfare. D) ue to recent cuts in the Department of the Censusʹ sampling budgets, industry surveys are no longer d reliable, so that there is no way to determine if a subsidy is in the publicʹs interest. E) one of the above. N Answer: C Question Status: revious Edition P 17) he invocation of beggar-thy-neighbor arguments with respect to industrial policies T A) trengthens the argument for subsidies. s B) akes sense if the international Keynesian multipliers exceed unity. m C) pplies only to rich countries most of whose trade partners are very poor countries. a D) eakens the argument for subsidies. w E) one of the above. N Answer: D Question Status: revious Edition P 18) hen the WTO met in Seattle to initiate a further move towards free international trade, thousands of W activists met A) n order to promote the WTOʹs goals of ʺTrade-not Aid.ʺ i B) n order to laud the WTO policy orientation which would bust local monopolies and therefore help i ordinary relatively poor consumers everywhere. C) n order to laud the WTO policy of disallowing government sweetheart deals, which typically meant i that corrupt governments subsidized their in-lawsʹ conglomerates on the backs of poor taxpayers. D) n order to support the WTO efforts of bringing about a universal shift of resources in poor countries to i higher efficiency and productivity uses, which would raise the real incomes of everyone. E) one of the above. N Answer: E Question Status: revious Edition P 19)...
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