The Proposal That Trade Agreements Should Include a System Which

question 30

Multiple Choice

The proposal that trade agreements should include a system which monitors worker conditions and make the results available to consumers in the rich importing country

• A) is consistent with the Invisible Hand paradigm.
• B) is consistent with the market failure approach.
• C) is consistent with the Ricardian theory of comparative advantage.
• D) is consistent with the scale economies approach to trade theory.
• E) is consistent with the principles laid out by the WTO.

---

Definitions:

Real GDP

Gross Domestic Product adjusted for inflation, providing a more accurate reflection of an economy's size and how it's growing over time.

Price Level

An index or measure that represents the average prices of goods and services in an economy at a given time.

Human Capital

The knowledge and skills that workers acquire through education and on-the-job training

Technology

The application of scientific knowledge for practical purposes, especially in industry and in the creation of goods and services.