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O was created to enforce free-trade rules. 31) The WT 32) Wealth and incom 33) O

ID: 1128714 • Letter: O

Question

O was created to enforce free-trade rules. 31) The WT 32) Wealth and incom 33) One reaso e measure the same thing. n why present dollars are worth more than future dollars is because income-earning investment opportunities exist. 34) The US federal income tax system is progressive, but sa les and property taxes are regressive 35) Free trade results in higher prices and reduced consumption. 36) Large in-kind benefits tend to increase the incentive to seek employment. 37) Profits are used by corporations for investment for unforeseen contingencies are known as dividends. 38) A county can continue to consume outside or on its production possibilities curve by trading. 39) The long term trend is toward increasing trade barriers. 40) Comparative advantage refers to opportunity costs of producing particular goods 41) Trade redistributes income from export industries to import industries.

Explanation / Answer

31) true

WTO was created to implement GATT to reduce tariff barriers and quota and to regulate free trade rules.

32) False

Wealth measures the stock of assets a person holds at a particular period of time. Income measures the money a person holds over a period of time.

33) False

Present dollars are worth more than future dollars, but because of inflation. Price level trends to increase with time, real value of dollar falls with rise in price.

34) true

Progressive tax is a tax which increases with increase in income. Regressive tax is tax which increases with decrease in income.

Income tax are progressive and sales and property tax are regressive.