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
-Although the GATT was supported by most of the countries of the world, yet global trade shrank during the close of the last decade. This was due to:
A)growing suspicion among the nations of the world.
B)hyperinflation in the major economies of the world.
C)the recession which began in 2007.
D)political turmoil in the Asian countries.
E)the desire among the major players to dominate the international market.

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
-Although the GATT was supported by most of the countries of the world, yet global trade shrank during the close of the last decade. This was due to:
A)growing suspicion among the nations of the world. 
B)hyperinflation in the major economies of the world. 
C)the recession which began in 2007. 
D)political turmoil in the Asian countries. 
E)the desire among the major players to dominate the international market.

Quizplus · Accepted Answer

The recession which began in 2007 led to a decline in global trade during the close of the last decade, as many countries experienced economic downturns and reduced demand for goods and services. This is a well-documented phenomenon in the field of economics. The other options (A, B, D, and E) are either not directly relevant to the decline in global trade or not supported by evidence.

In the Following Figure, the First Panel Shows a Market