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) The charter of the GATT had run out and a new organization was needed to promote international trade.
C) The creation of the European Union (EU) made the GATT obsolete. The WTO was formed to regulate trade between the EU and other nations.
D) By 1995 tariffs had been eliminated. The WTO was created to reduce non-tariff trade barriers.
Answer: A
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A demand curve shows the relationship between
A) the price of a produce and the demand for the product. B) the quantity that consumers are willing and able to buy and the quantity that sellers are willing and able to offer. C) the price of a product and the quantity of the product demanded. D) the amount of a product sellers are willing to sell at a particular price and the amount consumers are willing to buy at that price.
Which of the following is not a characteristic of a competitive price-searcher market?
a. Each firm produces a differentiated product. b. The entry barriers are high. c. Each firm faces a downward-sloping demand curve. d. The number of firms in the market is large.