In the Following Figure, the First Panel Shows a Market

question 31

Multiple Choice

In the following figure, the first panel shows a market situation prior to regulation and the second panel shows the effects of regulation.Figure 14.2
In the figure,
D: Demand curve for automobiles
S₁: Supply curve of automobiles prior to regulation
S₂: Supply curve of automobiles after regulation
FG: Clean up cost per unit
-Although the GATT was supported by most of the countries of the world, yet global trade shrank during the close of the last decade. This was due to:

• A)growing suspicion among the nations of the world.
• B)hyperinflation in the major economies of the world.
• C)the recession which began in 2007.
• D)political turmoil in the Asian countries.
• E)the desire among the major players to dominate the international market.

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Definitions:

Fatty Acids

Long hydrocarbon chains with a carboxylic acid group at one end; key components of lipids, they are important for energy storage and cellular membrane structure.

Bile

A digestive fluid produced by the liver and stored in the gallbladder, involved in the emulsification and absorption of fats in the small intestine.

Functions

The natural purpose or activities specific to a person, organ, system, or entity.

Liver

A vital organ in vertebrates responsible for detoxification, protein synthesis, and the production of biochemicals necessary for digestion, among other functions.