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
-Which of the following is true of the General Agreement on Tariffs and Trade (GATT)?
A)It is now called the World Agreement on Trade and Tariffs.
B)It was the global trade agreement that did away with the gold standard.
C)It was a policy of the United States to raise tariffs on imported sugar.
D)It was the first global trade agreement that followed World War II.
E)It was a global trade agreement to raise tariffs.

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
-Which of the following is true of the General Agreement on Tariffs and Trade (GATT)?
A)It is now called the World Agreement on Trade and Tariffs. 
B)It was the global trade agreement that did away with the gold standard. 
C)It was a policy of the United States to raise tariffs on imported sugar. 
D)It was the first global trade agreement that followed World War II. 
E)It was a global trade agreement to raise tariffs.

Quizplus · Accepted Answer

The General Agreement on Tariffs and Trade (GATT) was the first global trade agreement that followed World War II, aimed at reducing trade barriers and promoting free trade.

In the Following Figure, the First Panel Shows a Market