The WTO Differs from "GATT 1948" in That the WTO

question 15

Multiple Choice

The WTO differs from "GATT 1948" in that the WTO _____.

• A) has trade in services as its primary trade focus 
• B) has provisions that allows members to review other members' trade policies 
• C) has no rules governing intellectual property rights 
• D) has no mechanism to settle member disputes

---

Definitions:

Perfectly Competitive

Characterized by a large number of sellers and buyers, none of whom can influence market prices significantly.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and loan payments.

MC Curve

The Marginal Cost (MC) Curve is a graphical representation showing how the cost to produce one additional unit of a good changes as production volume increases.

Profit-Maximizing Firm

A company that aims to achieve the highest possible profit given its production costs and market conditions.