In the following figure, the first panel shows a market situation prior to regulation and the second panel shows the effects of regulation.Figure 14.2
In the figure,
D: Demand curve for automobiles
S 1 : Supply curve of automobiles prior to regulation
S 2 : Supply curve of automobiles after regulation
FG: Clean up cost per unit
-Delegates from different countries of the world met at Geneva in April 1947 which resulted in the formation of the first global trade agreement. Its main objective was:
A)to create multiple trade barriers in the member countries.
B)to enable the member countries to maintain their autarkic conditions.
C)to provide security to the domestic producers of the member countries by prohibiting international trade.
D)to create an atmosphere of economic rivalry in the international sphere.
E)to liberalize trade for mutual prosperity of the members.

Question

In the following figure, the first panel shows a market situation prior to regulation and the second panel shows the effects of regulation.Figure 14.2
  In the figure,
D: Demand curve for automobiles
S 1 : Supply curve of automobiles prior to regulation
S 2 : Supply curve of automobiles after regulation
FG: Clean up cost per unit
-Delegates from different countries of the world met at Geneva in April 1947 which resulted in the formation of the first global trade agreement. Its main objective was:
A)to create multiple trade barriers in the member countries. 
B)to enable the member countries to maintain their autarkic conditions. 
C)to provide security to the domestic producers of the member countries by prohibiting international trade. 
D)to create an atmosphere of economic rivalry in the international sphere. 
E)to liberalize trade for mutual prosperity of the members.

Quizplus · Accepted Answer

The main objective of the first global trade agreement, which was formed in Geneva in April 1947, was to liberalize trade for mutual prosperity of the member countries. This means that the member countries would reduce or eliminate trade barriers and promote international trade. This is in contrast to the other options, which involve creating trade barriers or prohibiting international trade, which would restrict growth and limit opportunities for mutual prosperity.

In the Following Figure, the First Panel Shows a Market