Which of the Following Statements About the World Trade Organization

question 227

Multiple Choice

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

• A) The World Trade Organization is a temporary institution.
• B) The 28 member countries of the WTO account for less than 40 percent of world trade.
• C) The WTO sets rules governing trade between its members and the rest of the world.
• D) The WTO uses panels of business professionals who can issue nonbinding recommendations.
• E) The WTO was formed by the major industrialized nations of the world.

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Definitions:

Producing Output

The process of generating goods or services as the result of economic activity.

Additional Unit

The next unit of product or service that could be produced or acquired.

Decreasing-Cost Industry

An industry in which costs per unit of output decrease as the scale of production increases, often due to factors like improved technologies or economies of scale.

Economic Adjustments

Shifts in economic policies or market conditions that lead to changes in allocation of resources, production, and pricing.