In Which Type of Trade Agreement Does the WTO Allow

question 64

Multiple Choice

In which type of trade agreement does the WTO allow exclusions to the most favored nation principle?

• A) multilateral trade agreements
• B) free-trade areas and customs unions
• C) multilateral trade agreements and free-trade areas
• D) customs unions and multilateral trade agreements

---

Definitions:

Monopolist

An individual or entity that has the exclusive control or possession of the supply or trade in a commodity or service, allowing them to manipulate the market.

Selling Price

Selling price is the amount of money that a seller is willing to accept in exchange for a good or service it provides to buyers.

Marginal Cost

The extra expense resulting from the manufacture of an additional unit of a product or service.

Social Cost

The cost to society as a whole due to an activity, including both direct costs incurred and indirect effects (such as environmental damage or health impacts).