Which of the following statements about the General Agreement on Tariffs and Trade (GATT) is FALSE? A. According to the GATT, a trade concession to one country did not become a concession to all countries. B. The GATT was succeeded by the World Trade Organization (WTO). C. The GATT was the first attempt to reduce trade barriers globally. D. The GATT introduced the concept of normal trade relations with trading partners. E. Under GATT, nations agreed to extend tariff reductions outlined in a treaty with a trading partner to all other countries.
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This statement is false. The GATT was not the first attempt to reduce trade barriers globally. The International Trade Organization (ITO) was the first attempt to reduce trade barriers globally. Show more…
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7. By the mid-1930's, governments all over the world entered the ____ era of international trade. Since 2017, the U.S. and other countries have moved closer to the ____ era which, in 1930, saw the passage of ____ and ____. a. Reciprocity; restriction; The Smoot-Hawley Tariff Act; The Great Depression b. Restriction; reciprocity; NAFTA; job losses in the United States. c. Revenue; restriction; Article One, Section Eight, Clause three of the Constitution; as expected, a decrease in total revenue. d. Reciprocity; restriction; the 16th amendment; World War II e. None of the above. 8. Based on what we know about the economic impact of tariffs and quotas, which of the garners some conditional support from economists? a. When concerns over human rights and the environment are used to increase tariffs. b. When a country becomes convinced that its trading partners are engaging in dumping or currency manipulation. c. When the value of the dollar fluctuates compared to foreign currency. d. When a government has decided that it needs to eliminate a balance of trade deficit with another nation. e. When, with temporary protection, an infant industry could emerge and show long-run comparative advantages over other countries. 9. Historically, many people have argued that tariffs and quotas should be used to prevent other nations from engaging in predatory pricing. For economists, this argument is largely flawed ______ because: a. Predatory pricing leads to fewer companies over time; higher prices and monopoly profits for the successful predator. b. Predatory pricing may lead to large discounts for consumers in the short run, but the elimination of job opportunities in the long run as domestic suppliers close. c. Predatory pricing has been proven to be an inefficient practice since the "predators" must be willing to incur initial losses and do not have the power to control markets indefinitely. d. Predatory pricing leads to companies with no comparative advantage being dominant in the markets they pursue.
Akash M.
Which of the following statements is true? A. Each country as a whole is made better off as a result of international trade, but individuals within each country may be made worse off. B. Although some individuals are made better off as a result of international trade, both countries may be made worse off overall. C. Within each country, some individuals are made better off as a result of international trade, but one of the countries will be worse off overall. D. All individuals in both countries are made better off as a result of international trade.
Jennifer S.
Evaluate the following statements: a. Protective tariffs reduce both the imports and the exports of the nation that levies tariffs. b. The extensive application of protective tariffs destroys the ability of the international market system to allocate resources efficiently. c. Unemployment in some industries can often be reduced through tariff protection, but by the same token inefficiency typically increases. d. Foreign firms that "dump" their products onto the U.S. market are in effect providing bargains to the country's citizens. e. In view of the rapidity with which technological advance is dispersed around the world, free trade will inevitably yield structural maladjustments, unemployment, and balance-of-payments problems for industrially advanced nations. f. Free trade can improve the composition and efficiency of domestic output. Competition from Volkswagen, Toyota, and Honda forced Detroit to make a compact car, and foreign imports of bottled water forced American firms to offer that product. g. In the long run, foreign trade is neutral with respect to total employment.
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