Which of the Following Is Prohibited by the World Trade

question 17

Multiple Choice

Which of the following is prohibited by the World Trade Organisation?

• A) currency restrictions on cash imports from Canada
• B) import quotas on beer from the United States
• C) tariffs on imported steel from Malaysia
• D) the creation of regional free- trade areas
• E) licensing of international motor transport carriers

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Definitions:

Giffen Good

A product that experiences an increase in demand as its price rises, contrary to the basic law of demand, often because it lacks close substitutes.

Normal Goods

Goods for which demand increases when consumers' income increases and falls when income decreases, all else being equal.

Consumption Bundle

A combination of various goods and services that an individual consumes.

Cappuccino

A popular coffee drink made with equal parts espresso, steamed milk, and frothed milk.