Visit the home page of the World Trade Organization
Questions:
- What is the primary function of this organization?
- What is the GATT? Discuss the economic rationale for agreements such as the GATT.
The functions of the WTO include:
- administering trade agreements (such as the GATT),
- attempting to resolve trade disputes, and
- monitoring national trade policies.
- The General Agreement on Tariffs and Trade (GATT) is an international agreement that governs international trade. The GATT provided the basic set of trading rules for the exchange of goods among countries. More recent trade agreements (such as the Uruguay Round) also contain provisions for trade in services and deals with the issue of intellectual property rights. The GATT, and subsequent international trade agreements, are designed to encourage free trade. The economic rationale for such agreements is that free trade benefits all participating countries.
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It is possible for an economy to become more productive and per-capita output to increase if
A) technology is improved. B) inventions are developed. C) new ideas are generated. D) all of the above
Which line in the figure shows a more elastic supply for euros?
A) Line S B) Line S' C) There elasticities are the same. D) This cannot be determined from the graph.
Under a Cournot duopoly, the collusion curve represents:
A) all possible allocations of the pure monopoly quantity among the two firms in the duopoly. B) all possible allocations of the pure monopoly quantity that would be possible if the two firms in the duopoly did not cooperate. C) all optimal price-quantity outcomes for a cartel rather than a Cournot duopoly. D) the potential profits to be earned by firms in a collusive cartel.
The quantity demanded of baseball bats increased from 1,000 units to 1,100 units when its price fell from $20 per bat to $18 per bat. The price elasticity of demand for baseball bats is:
a. 1.43. b. 0.99. c. 1.73. d. 2.44.