Which of the Following Is a Difference Between the General

question 40

Multiple Choice

Which of the following is a difference between the General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO) ?

• A) The GATT was ineffective in reducing tariff barriers,whereas the WTO reduced tariff barriers.
• B) The GATT includes an effective dispute settlement mechanism,whereas the WTO does not include a dispute settlement mechanism.
• C) The GATT does not cover Intellectual Property (IP)protection,whereas the WTO includes IP protection.
• D) The GATT includes an agreement on the trade of services,whereas the WTO does not cover the trade of services.

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Definitions:

Utility Function

A utility function is a mathematical representation of a consumer’s preferences, ranking different bundles of goods according to levels of satisfaction.

Indifference Curve

A graph showing different bundles of goods between which a consumer is indifferent, meaning they would derive the same level of satisfaction from any combination.

Bliss Point

The optimal quantity of consumption where any further increase or decrease would lead to a lower level of satisfaction for the consumer.

Indifference Curves

Graphical representations in microeconomics to illustrate different combinations of goods between which a consumer is indifferent.