Which of the Following Statements About the World Trade Organization

question 55

Multiple Choice

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

• A)The WTO is a branch of the U.S.government.
• B)The WTO's biggest concern is a decrease in world trade exports worldwide.
• C)Only developed nations belong to the WTO.
• D)The WTO was established during GATT's Uruguay round.
• E)All decisions made by the WTO are controlled by its five voting members.

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Definitions:

Economic Profit

The difference between total revenues and total economic costs (including both explicit and implicit costs), reflecting the additional income generated over and above the opportunity costs.

Normal Rate

A standard or typical rate used as a benchmark or point of reference, often in contexts like interest rates or economic growth rates.

Short Run

A period in which at least one input (such as plant size, machinery) is fixed and cannot be changed by the firm.

Capital Investment

Funds invested in a firm or enterprise for the purpose of furthering its business objectives, including purchasing assets or stocks.