The GATT's most-favored nation clause means that tariff reductions granted by a member of GATT to imports from one country
a. apply only to that country
b. are only extended to certain favored members of GATT
c. are extended to all other members of GATT
d. must be matched by equivalent quota reductions
e. are extended to all other countries of the world
QUESTION 2Which of the following is not an example of a differing taste for work?
a. Some people prefer physical labor and hate office work
b. Some people become airline pilots while others are afraid to fly
c. Winter temperatures are below zero on crab boats off Alaska
d. Teenagers prefer jobs at Starbucks and Gap to those at fast-food restaurants
e. Many people prefer the creative process even though earnings are low
QUESTION 3The General Agreement on Tariffs and Trade (GATT) was established in
a. 1870 to protect U.S. industries and decrease world trade
b. 1921 to manage legal and accounting requirements for U.S. tariffs and quotas
c. 1947 to reduce trade restrictions among 23 countries
d. 1973 to increase trade restrictions, after OPEC significantly raised oil prices
e. 1990 to create a common market
QUESTION 4LeBron James went right from high school to the NBA because he had a low opportunity cost of attending college.
a. True
b. False
QUESTION 5The establishment of GATT resulted in
a. lower tariff rates
b. increased tariff rates
c. decreases in total world trade
d. increased protectionism
e. a rise in the price of imports
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