The Principle by Which All Countries Involved in GATT Negotiations

question 110

Multiple Choice

The principle by which all countries involved in GATT negotiations receive the same tariff rates as the country with the lowest negotiated tariff rates is called

• A)regional trading areas.
• B)Uruguay Round.
• C)customs unions.
• D)most-favored nation.
• E)economic unionization.

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Definitions:

Variable Cost

Costs that are directly correlated with the quantity of production or output generated.

ATC Curve

The Average Total Cost curve, a graph that shows the cost per unit of output at different levels of production, typically U-shaped due to economies and diseconomies of scale.

Marginal Cost

The charge incurred for the manufacturing of one more unit of a particular good or service.

Average Fixed Cost

The fixed costs of production divided by the quantity of output produced, typically decreasing as production increases.