| Direction: in question numbers 82 to 86, you have a passage with five questions following each passage. Read the passage carefully and choose the best answer to each question out of the four alternatives. Economics models like the computable general equilibrium model are mostly valuable in policy formulation as they give some insight into how trade policy changes will affects the sectoral composition of output and employment. They are not in themselves designed to provide directs inputs but really to serve as background to the sectors that will be most favourably or most unfavourably affected by policy. Besides, they render valuable help in policy matters regarding free trade. Free trade has distinct benefits. These benefits are well accepted all over. However, there is a growing opposition to free trade. There is an increasing perception among certain groups of how international trading systems impact, especially how they affect low-wage workers and also have a degrading environmental impact. Yet, it is difficult to accept that that is the reason for any kind of protectionist move in the most advanced countries. |
A) They serve as a backdrop
B) They are unfavourable to free trade
C) Their design is not conducive to increase employment
D) They serve direct inputs
Correct Answer: A
Solution :
Econometric models are not in themselves designed to provide direct inputs but really to serve as background to the sectors that will be most favourably or unfavourably affected by policy.
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