What Must a Country Give Up in Order to Be

question 124

Multiple Choice

What must a country give up in order to be a member of the World Trade Organization?

• A) a large membership fee
• B) part of its sovereignty
• C) some land that can be used for WTO functions
• D) its language
• E) all of the above

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Definitions:

Implicit Costs

The opportunity costs of using resources owned by the firm for its own operations, without direct payment but with foregone opportunities.

Explicit Costs

Direct, out-of-pocket payments for wages, rent, and materials, among others, involved in the production of goods or services.

Opportunity Costs

The cost of forgoing the next best alternative when making a decision or choice.

Implicit Costs

Indirect, non-out-of-pocket expenses which represent the opportunity costs of using resources owned by the firm for its operations.