Strictly Speaking,the Impact of the EU on the WTO Could

question 38

Multiple Choice

Strictly speaking,the impact of the EU on the WTO could be said to be negative,because

• A) a country could belong to only one of these organizations.
• B) the favored trade relationships among EU members are not extended to nonmember countries, so the EU undercuts the WTO.
• C) the euro threatens other hard currencies supported by the WTO, such as the dollar and the yen.
• D) the WTO does not collect dues from EU member nations.

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Definitions:

MR

Short for Marginal Revenue, it is the increase in revenue from selling one additional unit of a good or service.

Negative Profits

A financial loss or situation where expenses exceed revenues in a business.

Profit-Maximizing

A company's goal to achieve the highest profit possible given its products, market conditions, and operational costs.

Economic Profit

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs.