One of the Basic Elements of the General Agreement on Tariffs

question 63

Multiple Choice

One of the basic elements of the General Agreement on Tariffs and Trade (GATT) is that:

• A) member nations are exempt from import tariffs to other member nations.
• B) all tariffs shall be abolished among member nations at the time of membership.
• C) the World Court shall review all claims and make final judgments.
• D) trade shall be conducted on a nondiscriminatory basis.
• E) trade in services and investments will be excluded from the purview of the GATT.

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Definitions:

Scarce Resources

Natural, human, and artificial resources that are limited in supply and cannot satisfy all human wants and needs.

Secondary Effects

The unintended consequences of economic actions, which can occur as indirect results of a policy or event.

Economic Actions

Decisions or behaviors taken by individuals, firms, or governments that affect the production, distribution, and consumption of goods and services.

Positive Economic Statement

An objective statement about the economy that can be tested and validated through observation.