12. Which of the following statements is NOT true? A. Policy should seek to subsidize the generation of knowledge that firms cannot appropriate. B. Substantial environmental damage has been done to provide goods to advanced-country markets. C. Environmental standards in developing-country export industries are much lower than in advanced country industries. D. It is always easy to identify the knowledge generation and let the government subsidize. E. Trade and industrial policy should be targeted specifically on the activity in which the market failure occurs.13. Suppose that the world price of a smartphone is $1,000 each. Now suppose that the United States, a large country, imposes a 10% tariff on imported smartphones. What is the U.S. domestic price of smartphones after the 10% tariff is imposed? A. Less than $900 B. Between $900 and $1000 C. Between $1000 and $1100 D. Higher than $1100 E. There is not enough information to answer the question. 21. Which of the following statements is NOT true? A. Export-biased growth in China improves Australia's terms of trade. B. Import-biased growth in China worsens Australia's terms of trade. C. Export-biased growth in Australia improves China's terms of trade. D. Import-biased growth in Australia improves Australia's terms of trade. E. Export-biased growth in China has no effect on Australia's terms of trade