Which of the Following Is True Regarding the Difference Between

question 29

Multiple Choice

Which of the following is true regarding the difference between GATT and WTO?

• A)The WTO was encouraged to extend its reach to encompass regulations governing foreign direct investment unlike GATT.
• B)WTO operates on the basis of consensus unlike GATT.
• C)GATT gives trading partners the right to compensation or,in the last resort,to impose (commensurate)trade sanctions unlike WTO.
• D)GATT's verdict is binding unlike that of WTO's.
• E)WTO allows member-countries to block adoption of arbitration reports unlike GATT.

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Definitions:

Barriers to Entry

Obstacles that make it difficult for new competitors to enter a market, such as high startup costs, strict regulations, or established brand loyalty.

Economic Profits

The excess of total revenues over total costs, including both explicit costs and opportunity costs, indicating a return beyond the normal profit level.

Accounting Profits

The net earnings of a company as calculated by subtracting total expenses from total revenues, according to standard accounting practices.

Perfect Competitor

A theoretical market structure where many firms sell homogeneous products, entry and exit from the market are free, and all participants have perfect information.