In 1995, the General Agreement on Tariffs and Trade (GATT), which was established in 1948, was replaced by the World Trade Organization (WTO). Why did members of the GATT push for the establishment of the WTO?
A) The GATT agreement only covered trade in goods. The WTO was created to cover trade in goods, services, and intellectual property.
B) By 1995 tariffs had been eliminated. The WTO was created to reduce non-tariff trade barriers.
C) The charter of the GATT had run out and a new organization was needed to promote international trade.
D) The creation of the European Union (EU) made the GATT obsolete. The WTO was formed to regulate trade between the EU and other nations.
A
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Refer to Figure 28-9. A(n) ________ would be depicted as a movement from A to D to C
A) supply shock, such as rising oil prices, B) implementation of contractionary monetary policy C) increase in short-run aggregate supply D) increase in aggregate demand
A tax would not impose a welfare cost only if: a. the quantity exchanged did not change as a result. b. supply was perfectly elastic
c. supply was unit elastic. d. the demand curve was perfectly elastic.