Identify the Correct Statement

question 14

Multiple Choice

Identify the correct statement.

• A)The overall effects of the Uruguay Round on global pollution are actually small.
• B)The actual effects of the Uruguay Round on pollution levels are uniform across all the countries.
• C)Evidence shows that free trade is inherently anti-environment.
• D)The composition effect of the Uruguay Round tends to increase production of environment friendly products in the United States.

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Definitions:

Socially Optimal

A state in which resources are allocated in the most efficient and equitable manner from a societal perspective.

Network Externality

A situation where the value or utility of a product or service to one user increases with the number of other users of the same or compatible products or services.

Marginal Private Benefits

The additional benefit received by consumers or producers from consuming or producing one more unit of a good or service.

Negative Externalities

Unintended adverse effects on third parties not involved in an economic transaction, like pollution.