The Argument That Strategic Planning Is NOT Likely to Be

question 7

Multiple Choice

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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Definitions:

Period Cost

Expenses incurred that are not directly tied to production activities, such as selling, administration, and financial costs.

Direct Labor

The wages paid to workers directly involved in the production of goods or services.

Intangible Asset

An asset that lacks physical substance but provides future economic benefits, such as intellectual property, goodwill, and brand recognition.

Amortization

The gradual reduction of a debt or the spreading of the cost of an intangible asset over its useful life.