Which of the Following Is True of the World Trade

question 44

Multiple Choice

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

• A) It lacks the power to impose international trade sanctions.
• B) It mediates global trade disputes.
• C) It was replaced by the GATT in 1995.
• D) It increases tariffs and other international trade barriers.
• E) It restricts the maximum number of member nations to 100.

---

Definitions:

Supply Equation

A mathematical representation of the relationship between the quantity of a good supplied by producers based on various factors, including price.

Price Ceiling

A legal maximum price set by the government for a particular good or service, aimed at preventing prices from reaching excessively high levels.

Shortage/Surplus

A shortage occurs when demand exceeds supply for a product or service, whereas a surplus occurs when supply exceeds demand, leading to downward pressure on prices.

Demand Equation

A mathematical expression that relates the quantity of a good that consumers are willing to buy to the good's price and other variables such as income and the price of related goods.