11. High-income industrial nations such as the United States and Japan tend to have their highest tariffs in A) newer, high-technology manufacturing industries. B) capital-intensive, diversified manufacturing. C) agriculture, clothing, and textiles D) automobiles. E) computers. 12. Which of the following describes the asymmetry Mancur Olson observed in the incentives to support and oppose a tariff policy? A) The total benefit of those seeking protection outweighs the total cost of those who are hurt by the protection. B) The benefits of protection are spread out over a large number of firms and industries, but the costs are concentrated on consumers. C) The costs of protection are spread out over a large number of firms, and the benefits of protection are concentrated on consumers. D) The costs of protection are concentrated on a few firms, and the benefits of protection are spread out over a large number of consumers. E) The benefits of policy are concentrated, and the costs are spread out over a large number of participants. 13. Economists believe that there are many nonmonetary gains from further trade opening. Which of the following is NOT one of those potential gains? A) Economies of scale from increased production decreases costs. B) Intensified competition is usually an incentive to innovate. C) Governments of developing countries will be less reliant on tariff revenue. D) Diversification of production lowers risks. E) More diversity of goods available benefits consumers. 14. Consider an industry with positive externalities. For example, the pharmaceutical industry is often thought to have positive externalities, since the knowledge that one firm develops benefits not only that firm but other firms and society in general. Governments may be tempted to protect such an industry, for example by giving it subsidies or imposing tariffs on imports. If a nation protects an industry because it believes that it has positive externalities, then it is asserting that the free market will A) produce less than is optimal from society's point of view. B) produce more than is optimal from society's point of view. C) produce the correct amount but charge too high a price. D) produce the correct amount but charge too low a price. E) produce the correct amount and charge the right price