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
c. customs unions
d. free-trade areas and customs unions
Answer: d. free-trade areas and customs unions
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What will be an ideal response?
If the liberum veto is used in a policy-making setting, it means:
A. it is easy to halt policies, because only one person needs to be bribed to stop them. B. that government is an easy target for an area to become corrupt or taken advantage of. C. complete consensus is needed for legislation to pass. D. All of these are true.
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What will be an ideal response?
Contractionary fiscal policy tends to ________ consumption because it may reduce ________
A. increase; disposable income. B. increase; savings. C. reduce; savings. D. reduce; disposable income.