Which of the Following Statements Is True

question 100

Multiple Choice

Which of the following statements is true?

• A) In both black markets and legal markets, supply and demand determine price.
• B) The quality of products sold in black markets and legal markets are similar.
• C) The price of products in black markets tends to be the same as those in legal markets for otherwise identical products.
• D) The rate of violence is similar in black markets and legal markets.

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Definitions:

WTO

Short for World Trade Organization, an international body aimed at promoting and facilitating free trade by reducing tariffs and other trade barriers.

Tariff

A tax or duty to be paid on a particular class of imports or exports, used by governments to regulate trade.

Normal Trade Relations

A GATT principle of trade law which requires that WTO member states treat like goods coming from other member states on an equal basis.

GATT

General Agreement on Tariffs and Trade, a multilateral treaty aimed at reducing global barriers to trade and promoting international commerce.