The Main Operating Principle of the General Agreements of Tariffs

question 12

Multiple Choice

The main operating principle of the General Agreements of Tariffs and Trade (GATT) was the concept of normal trade relations (NTR) status, formerly known as:

• A) Early Favored Nation status.
• B) Most Favored Nation status.
• C) Late Favored Nation status.
• D) the World Trade status.
• E) the Best Nation status.

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Definitions:

Variable Costs

Expenses that change in proportion to the activity of a business.

Marginal Costs

The additonal cost incurred by producing one more unit of a product or service.

Elasticity of Demand

The elasticity of demand measures how responsive the quantity demanded of a good or service is to a change in its price, indicating the sensitivity of consumers to price changes.

Price Discrimination

A pricing strategy where identical or substantially similar goods or services are sold at different prices by the same provider in different markets or to different customers.