Article Summary Roberto Azevedo, Director-General of the World Trade Organization (WTO), Reported

question 71

Multiple Choice

Article Summary
Roberto Azevedo, director-general of the World Trade Organization (WTO) , reported that global trade growth estimates will be lowered for 2013 and 2014 because of increasing global protectionism. The current protectionism is based primarily in regulations rather than the more common tariffs and subsidies. Since 2008, almost 700 new trade restrictions have materialized — over 150 of those in 2012 alone — with Russia being singled out as one of the primary offenders.
Source: Kiran Moodley, "WTO warns of trade slowdown due to protectionism," CNBC, September 6, 2013.

-Refer to the Article Summary.The protectionism being granted to Russian firms is likely to cause

• A)exporting countries to retaliate by placing trade barriers on Russian imports.
• B)Russian manufacturers to become more efficient.
• C)Russian consumers to pay lower prices for a wider variety of products.
• D)most countries to reduce their own trade barriers to be able to better compete with Russian imports at home.

Comprehend the concept of System 1 and System 2 in the brain and their roles in decision making.

Acknowledge the influence of context on preferences and decisions in behavioral economics.

Understand how behavioral economics incorporates fairness into its analysis.

Recognize the importance of framing effects and mental accounting in influencing decisions.

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Definitions:

Constants

Fixed values that do not change within the context of a mathematical equation, experiment, or model, serving as a reference point for comparisons and calculations.

Indifference Curve

A graph representing combinations of goods between which a consumer is indifferent, showing their preferences.

Absolute Values

A mathematical operation that determines the magnitude of a number without regard to its sign, represented as the distance from zero on the number line.

Favorite Bundle

A term in economics, particularly in consumer theory, referring to the combination of goods and services that maximizes a consumer's utility or satisfaction given their budget constraints.