The GATT Escape Clause

question 27

Multiple Choice

The GATT escape clause:

• A) Allows a country to take temporary corrective action to protect a domestic industry.
• B) Allows members who no longer wish to be a part of the WTO to quit.
• C) Allows a country to impose tariffs on countries that are engaging in dumping.
• D) Allows a country to disaffirm any previous tariffs they have imposed on another GATT member.

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Definitions:

Inflation

The velocity at which the general cost of goods and services surges, thereby diminishing the purchasing capacity.

Output

The amount of something produced by a person, machine, or industry.

Unemployment

Unemployment refers to the situation in which individuals who are capable of working and willing to work at prevailing wage rates cannot find employment.

Sacrifice Ratio

An economic term that quantifies the effect of decreasing inflation on an economy, typically measured as the percentage loss in output per one percentage point decrease in inflation.