The WTO/GATT

question 118

Multiple Choice

The WTO/GATT:

• A)prefers that countries use export subsidies rather than production subsidies on its agricultural production.
• B)prefers that countries use production subsidies rather than export subsidies on its agricultural production.
• C)has no preference between export subsidies and production subsidies on countries' agricultural production.
• D)wants export subsidies to replace production subsidies.

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Definitions:

Price

The monetary value assigned to a product or service, determined by various factors including supply, demand, and production costs.

Diagram

A simplified drawing or plan that represents facts, figures, or ideas through symbols, shapes, or lines.

Equilibrium Price

The cost at which the amount of a product sought by consumers matches the amount available from suppliers, leading to equilibrium in the market.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good consumers are willing and able to purchase, typically depicting a downward slope.