The World Trade Organization

question 33

Multiple Choice

The World Trade Organization

• A) is also known as the International Monetary Fund (IMF).
• B) is also known as NAFTA.
• C) was established to resolve disputes arising under world trade rules.
• D) enhances world trade by providing interest rate subsidies to foreign borrowers who buy exports on credit.

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Definitions:

Real GDP

The measure of a country's economic output adjusted for price changes and inflation.

Tax Revenues

The income that is gained by governments through taxation, a primary source of public finance.

Transfer Payments

Payments made by the government to individuals without any expectation of a direct return, such as welfare, social security, and unemployment benefits.

Automatic Stabilizers

Economic policies and programs, such as unemployment benefits and progressive taxation, that automatically help stabilize an economy by increasing spending in a downturn and reducing spending in an upswing without additional government action.