PASSAGE 6 (Questions 1-5)
Economic models like the combutable general equilibrium model are mostly valuable in policy formulation as they give some insight into how trade policy changes will affect the sectoral composition of output and employment.
They are not in themselves designed to provide direct inputs but really to serve as background as to the sectors that will be most favorably or most unfavouably 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, specially how they affect low-wage workers and also have a degrading environmental impact. Yet, it is difficult to accept that is the reason for any kind of protectionist move in the most advanced countries.
Most advanced countries are cautious about free trade because
A. They prefer to have a protectionist approach.
B. They feel degraded in inter-national trading community.
C. Their vested interests are thwarted.
The author of the passage seems to be
Which of the following statements is definitely true in the context of the passage?
A. Despite the advantages of free trade, it is not wholeheartedly acclaimed by most advanced countries.
B. Policy formulation should be solely dependent on econo- metric models.
C. Reasons for model approach by advanced countries are not given in the passage
What is the contribution of econometric models?
Which of the following is the characteristic of econometric models? ?
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