Econometric models like the computable 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 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 is the reason for any kind of protectionist move in the most advanced countries.
In the passage 14, which of the following statements is definitely true in the context of the passage?
A Despite the advantages of free trade, it is not whole- heartedly acclaimed by most advanced countries.
B. Policy formulation should be solely dependent on econometric models.
C. Reasons for model protectionist approach by advanced countries are not given in the passage.

Options

A. Only A
B. Only B
C. Only C
D. A and B only

Answer

d