The Argument That Strategic Planning Is Not Likely to Be

question 3

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:

Business Cycle

The Business Cycle is the fluctuation of economic activity that an economy experiences over a period of time, marked by phases of expansion and contraction.

Recovery Phase

A stage in the economic cycle where activity starts to increase again after a downturn, leading to improvements in employment, consumer confidence, and spending.

Recessionary Phase

A period in the business cycle where the economy is contracting, leading to reduced economic activity and increased unemployment.

Prosperity Phase

A period during an economic cycle characterized by high economic growth, employment, and consumer spending.