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.