Unilateral Actions by Individual Nations in Trade Matters

question 44

Multiple Choice

Unilateral actions by individual nations in trade matters:

• A)is authorized by most international trade agreements.
• B)is preferred in resolving trade disputes since the actions can be taken quickly.
• C)often mean that international trade organizations have failed to resolve trade conflicts.
• D)often result in a cycle of retaliation against each other which interferes with international trade.

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Definitions:

Output Level

The total quantity of goods or services produced by a firm or industry within a specific period.

External Costs

Costs that are not borne by the producer or consumer of a good or service, but by third parties or society as a whole, such as pollution.

Market Outcome

The end result of market interactions, determined by supply and demand forces, affecting prices and quantities.

Efficient Price

A market price that fully reflects all available information and maximizes the total benefits to society.