Question

Nontradable goods are ________.

products and services that comprise a portion of the functions or components going into a final product or service

goods vital for national defense

factors of production

Which of the following members of the European Union has NOT adopted the euro?

Greece

Germany

France

the U.K.

Under the WTO agreement, ________.

tariffs are permitted to be levied by developed countries against developing countries but not against each other

countries are allowed to place trade barriers on member countries with no particular justification, because like GATT the WTO has no enforcement mechanism

there is no dispute resolution mechanism except for trade involving environmental products

a dispute resolution mechanism allows countries to bring grievances to the WTO against countries that levy inappropriate trade discrimination measures

products and services that are impractical to export, mainly because of transportation costs

Answer 1

Q1) The answer is all of these are incorrect. Nontradeable goods are those which can not be exported due to very high transportation costs.

Q2) The answer is (d) UK.

UK still has the GBP as its currency and did not adopt the Euro. All remaining countries have adopted the Euro

Q3) The answer is (d) a dispute resolution mechanism allows countries to bring grievances to the WTO against countries that levy inappropriate trade discrimination measures. This is one of the major prupose of WTO as a dispute settler.