Which of the following statements characterizes NAFTA's economic arrangements among its member countries (Canada, Mexico, and the United States)?
a. There are no restrictions on the movement of labor from one country to another.
b. There are no restrictions on the movement of capital from one country to another.
c. All three countries have adopted the same identical tariff system.
d. There is free trade among the three member countries.
Ans: d. There is free trade among the three member countries.
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In third-degree price discrimination, markets with a smaller price elasticity of demand are ________ responsive to price changes and are charged ________ prices than markets with a larger price elasticity of demand.
A) less; lower B) more; lower C) less; higher D) more; higher
In the short run, a monopolistically competitive firm
a. must earn zero economic profit b. may earn positive or negative economic profits c. will produce output up at the point where TR = TC d. will be protected from competition by barriers to entry e. will equate price and marginal cost
No supply curve exists for a monopoly in the sense that a supply curve exists for a perfectly competitive firm.
Answer the following statement true (T) or false (F)
The relative-wage explanation for the existence of downwardly sticky wages emphasizes
A. employment contracts that stipulate workers' wages, usually for a period of one to three years. B. the contention that workers in one industry may be unwilling to accept a wage cut, unless they know that workers in other firms and industries are receiving similar cuts. C. the incentive that firms may have to hold wages above the market clearing rate. D. unspoken agreements between workers and firms that firms will not cut wages.