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Questions and Answers
The World Trade Organization (WTO) was established in 1948.
The World Trade Organization (WTO) was established in 1948.
False (B)
Mercantilism aims to achieve a trade surplus by minimizing exports and maximizing imports.
Mercantilism aims to achieve a trade surplus by minimizing exports and maximizing imports.
False (B)
The law of comparative advantage was first introduced by an economist from the United States.
The law of comparative advantage was first introduced by an economist from the United States.
False (B)
A country has an absolute advantage if it can produce goods at a lower cost than other countries, but still makes a loss.
A country has an absolute advantage if it can produce goods at a lower cost than other countries, but still makes a loss.
The General Agreement on Tariffs and Trade (GATT) was replaced by the World Trade Organization (WTO) in 1948.
The General Agreement on Tariffs and Trade (GATT) was replaced by the World Trade Organization (WTO) in 1948.
Today, only about 50% of all world trade is conducted through the World Trade Organization (WTO).
Today, only about 50% of all world trade is conducted through the World Trade Organization (WTO).
The absence of government policies on the import and export of goods and services is a key component of protectionism.
The absence of government policies on the import and export of goods and services is a key component of protectionism.
Most industrialized nations have successfully implemented pure free-trade policies.
Most industrialized nations have successfully implemented pure free-trade policies.
Free trade agreements (FTAs) typically result in unrestricted free trade between participating nations.
Free trade agreements (FTAs) typically result in unrestricted free trade between participating nations.
Economists believe that trade restrictions are the key to maintaining a healthy global economy.
Economists believe that trade restrictions are the key to maintaining a healthy global economy.
The United States has a protectionist trade policy and does not engage in free trade agreements.
The United States has a protectionist trade policy and does not engage in free trade agreements.
The North American Free Trade Agreement (NAFTA) is an example of a protectionist trade policy.
The North American Free Trade Agreement (NAFTA) is an example of a protectionist trade policy.
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