The Establishment of GATT Resulted In

question 54

Multiple Choice

The establishment of GATT resulted in:

• A)lower tariff rates.
• B)an increase in the net welfare loss of economies.
• C)a decrease in the total world trade.
• D)increased protectionism.
• E)a rise in the price of imports.

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Definitions:

Budget Constraints

A representation of the trade-offs between different goods and services that a consumer can afford with their limited income.

Optimum

The most favorable condition or level for growth, reproduction, or efficiency, or the best or most efficient use of resources.

Substitution Effect

The financial concept where consumers opt for cheaper alternatives when prices increase or their income falls.

Income Effect

Adjustments in the income of a person or the economy and how these adjustments affect the need for certain goods or services.