The difficulty of ascertaining the right second-best trade policy to follow
A) reinforces support for the third-best policy approach.
B) reinforces support for increasing research capabilities of government agencies.
C) reinforces support for abandoning trade policy as an option.
D) reinforces support for free-trade options.
E) reinforced support for the domestic market failure argument.
D
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Country X exports 10 million tonnes of wheat to Country Y. Which of the following will happen in this case?
A) Country X's GNP will decrease. B) Country Y's GNP will increase. C) Country Y's GDP will increase. D) Country X's GDP will increase.
Economic theory is a valuable tool for business decision making because it
A. identifies for managers the essential information for making a decision. B. creates a realistic, complex model of the business firm. C. assumes away the problem. D. provides an easy solution to complex business problems.