The "Escape Clause" of the GATT Agreement Derives Its Name

question 42

Multiple Choice

The "escape clause" of the GATT agreement derives its name from the fact that:

• A) it allows a country to escape from having trade disputes settled by GATT guidelines.
• B) it permits a country to escape from its previously negotiated tariff obligations.
• C) it permits a country to be relieved of having to make its balance of payments obligations for a short period of time.
• D) none of these are correct.

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Definitions:

Standard Price

A set cost figure used to value inventory or measure cost performance, often compared to actual prices to calculate variances.

Material Price Variance

The difference between the actual cost of materials purchased for production and the standard cost, indicating how much more or less was spent than expected.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels of the business.

Static Budget

A financial plan that does not change over the period for which it is set, regardless of any changes in activity levels.