In the Following Figure, the First Panel Shows a Market

question 16

Multiple Choice

In the following figure, the first panel shows a market situation prior to regulation and the second panel shows the effects of regulation.Figure 14.2
In the figure,
D: Demand curve for automobiles
S₁: Supply curve of automobiles prior to regulation
S₂: Supply curve of automobiles after regulation
FG: Clean up cost per unit
-Which of the following is true of the General Agreement on Tariffs and Trade (GATT) ?

• A)It is now called the World Agreement on Trade and Tariffs.
• B)It was the global trade agreement that did away with the gold standard.
• C)It was a policy of the United States to raise tariffs on imported sugar.
• D)It was the first global trade agreement that followed World War II.
• E)It was a global trade agreement to raise tariffs.

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Definitions:

Net Earnings

Take-home pay, calculated by subtracting total deductions from gross earnings.

Tax Liability

The total amount of tax that an individual or entity is legally obligated to pay to a tax authority.

Weekly Salary

The total amount of money earned by an employee for work done in a single week.

Fourth Of July

A holiday in the United States commemorating the adoption of the Declaration of Independence on July 4, 1776.