Merchandise exports minus imports equal the
A) basic balance.
B) liquidity balance.
C) official settlements balance.
D) balance of trade.
Question 2
The argument that strategic planning is not likely to be practical due to insufficient information means that
A) because of trade secrets, the government does not know true cost relationships in any given industry.
B) if the government had all the relevant information in a given industry then it could decide whether a subsidy would enhance the public's welfare.
C) even if the government had all the relevant information in a given industry, it still could not decide whether a subsidy would enhance the public's welfare.
D) due to recent cuts in the Department of the Census' sampling budgets, industry surveys are no longer reliable, so that there is no way to determine if a subsidy is in the public's interest.
E) the government would need to employ its intelligence agencies in order to gain a complete understanding of the market.
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