Which of the Following Statements About the World Trade Organization

question 4

Multiple Choice

Which of the following statements about the World Trade Organization (WTO) is most accurate?

• A) The WTO acts as an agent in trade negotiations between its members and the remainder of the world.
• B) The 39 member countries of the WTO account for about 25 percent of world trade.
• C) The WTO attempts to mitigate trade wars between countries.
• D) The WTO uses legal scholars who can only issue nonbinding recommendations.
• E) The WTO was formed by the United Nations.

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Definitions:

Inelastic Demand

A situation where demand for a product or service is relatively unmoved or less sensitive to changes in price.

Elastic Supply

A situation where the quantity of a good supplied by producers changes significantly in response to a small change in price.

Tax Burden

The measure of taxes paid as a proportion of income or the overall economic impact of taxes on an individual or business.

Own Price Elasticity

A measure of the responsiveness of the quantity demanded of a good to a change in its own price.