5. The difficulty of ascertaining the right second-best trade policy to followA) 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) reinforces support for the domestic market failure argument.
Question
- The difficulty of ascertaining the right second-best trade policy to followA) 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) reinforces support for the domestic market failure argument.
Solution
The question is asking which of the options is reinforced by the difficulty of determining the correct second-best trade policy.
A) This option suggests that the difficulty supports the third-best policy approach. However, without context, it's unclear what this third-best policy approach is.
B) This option suggests that the difficulty supports increasing the research capabilities of government agencies. This could be a possibility if the difficulty lies in the lack of information or understanding of trade policies.
C) This option suggests that the difficulty supports abandoning trade policy as an option. This seems like a drastic measure and doesn't necessarily follow from the difficulty of determining a second-best policy.
D) This option suggests that the difficulty supports free-trade options. This could be a possibility if the difficulty lies in the complexity of determining trade policies, and free trade is seen as a simpler alternative.
E) This option suggests that the difficulty supports the domestic market failure argument. This could be a possibility if the difficulty lies in the inability of domestic markets to compete internationally.
Without more context, it's difficult to definitively choose one of these options. However, options B, D, and E seem to be the most plausible based on the information given.
Similar Questions
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