The General Agreement on Tariffs and Trade (GATT)is Based on the Principle

question 122

Multiple Choice

The General Agreement on Tariffs and Trade (GATT) is based on the principle of:

• A) establishing a single international currency.
• B) tariff reductions through multilateral negotiations.
• C) converting tariffs to import quotas.
• D) establishing common environmental and labor standards for all member nations.

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Definitions:

Equilibrium Price

The cost point where the amount of a product or service that buyers want to purchase is the same as the amount sellers are willing to offer, creating a balanced market situation.

Price Ceiling

A restriction enforced by authorities on the top price allowable for goods, services, or resources.

Quantity Demanded

The amount of a good or service that consumers are willing and able to purchase at a specific price.

Physicals

Refers to physical commodities or assets, as opposed to financial instruments or derivatives, that are traded or examined.