Question

The World Trade Organization

1. requires members to charge the same prices on goods traded internationally.
2. requires members to reduce tariffs and eliminate non-tariff barriers.
3. is made up of business leaders from all over the world.

Which of the following factors contributed to the difficulty of the transition in the former Soviet Union?

1. Households preferred the communist system.
2. Free market institutions were not in place.
3. Tax rates were excessively high

The role of the price of labor in a market economy is to

1. provide information about where resources are best employed and to give workers an incentive to work hard.
2. ensure that workers are fairly paid for the work they do.
3. motivate people to change jobs frequently, increasing the level of income in the economy..

Answer 1

Sol. : option (b) is correct ( requires members to reduce tariffs and eliminate non - tariff Barriers. )


World trade organisation is the organization which is set up to make the global trade with rules and regulation.

In order to ensure that trade is done in right way , sometime WTO requires the member to reduce tariff or eliminate non tariff barriers.

It is not made up by business leaders all over the world instead countries are its member. Presently, 164 countries are its member.

And , WTO never requires the member to charge same price internationally . it gives no sense of trade , if price of goods become same.