Which of the Following Will Support the Claim That the Development

question 40

Multiple Choice

Which of the following will support the claim that the development of the GATT, WTO, and various trade blocs have been successful in promoting international trade?

• A) Trade blocs have resulted in a lot of trade diversion from low-cost suppliers.
• B) World exports, as a proportion of world GDP, have been growing rapidly over the last few
• C) Tariffs are an important source of revenue for the governments of many countries.
• D) When one country introduces trade barriers such as import tariffs, trading partners often

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Definitions:

Technological Advance

The progress in technological development that leads to more efficient processes, products, or services.

Productive Capital

Resources such as machinery, tools, and buildings used in production to generate wealth.

MP/P

The ratio of marginal product to price, often used to optimize production levels in economic analysis.

Factor Markets

The venues where services of the factors of production, such as labor, capital, and land, are bought and sold.