What was the GATT, why was it established, and why and with what was it replaced?
What will be an ideal response?
By the end of World War II in 1945, government officials in the United States and
Europe were looking for a way to reduce tariffs and revive international trade. To help achieve this goal, they set up the General Agreement on Tariffs and Trade (GATT) in 1948. Countries that joined GATT agreed not to impose new tariffs or import quotas. In the 1940s, most international trade was in goods, and the GATT agreement covered only goods. In the following decades, trade in services and products incorporating intellectual property, such as software programs and movies, grew in importance. Many GATT members pressed for a new agreement that would cover services and intellectual property, as well as goods. A new agreement was negotiated, and in January 1995, the GATT was replaced by the World Trade Organization (WTO).
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The slope of a production possibilities curve represents:
A) the marginal cost of producing the good measured on the horizontal axis. B) the marginal cost of producing the good measured on the vertical axis. C) the opportunity cost of producing the goods. D) the ratio of the average cost of producing both goods.
________ wages are wages paid by employers to increase worker motivation and productivity
A) Real B) Nominal C) Minimum D) Efficiency
Inflation leads to ________
A) increased variability of relative prices only when it is anticipated B) increased variability of relative prices only when it is unanticipated C) increased variability of relative prices whether inflation is anticipated or not D) lower variability of the general price level only when it is very high E) none of the above
Which is the best example of a firm's implicit costs?
A) wages B) the opportunity cost of owner-provided labor C) rent D) taxes