Which of the Following Is Most Likely to Be Allowed

question 46

Multiple Choice

Which of the following is most likely to be allowed under WTO rules?

• A)The United States decides to ban the consumption and production of cheese made from unpasteurized milk in order to guarantee that the food people eat is safe.
• B)The United States decides to ban the importation of foreign made cigarettes in order to reduce lung cancer in the United States, without putting any restriction on the sale of local cigarettes.
• C)Great Britain outlaws non-British cars in an effort to reduce emissions in England, Scotland, and Wales.
• D)Japan bans the importation of American rice because it is thought that American rice may not be as nutritious as Japanese rice.

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Definitions:

Cost Function

A cost function depicts how the total cost of production changes with variations in the quantity of output produced, linking cost to output level.

Snow Removal

The process of clearing snow from surfaces, such as roads and sidewalks, to make them accessible and safe.

Long-Run Equilibrium

A state in which all firms in a market are making zero economic profit, and no new firms have an incentive to enter or exit the market.

Total Costs

The sum of all costs associated with the production of goods or services, including fixed and variable costs.