Which of the following is NOT a reason for Canada to join NAFTA?
a. Canadian firms can expand their markets by selling to the United States and Mexico.
b. Canadian firms can enjoy lower average costs by producing more.
c. Canada did not want U.S. products to dominate its domestic market.
d. Canada will see an increase in income and employment by joining NAFTA.
Ans: c. Canada did not want U.S. products to dominate its domestic market.
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Involuntary unemployment
A) will increase as the wage rate falls. B) exists when there is an excess quantity of labor supplied. C) occurs when the wage rate is below the equilibrium wage rate. D) exists when there is a shortage of labor.
Foreign direct investment is:
A. investment that occurs when a firm runs part of its operation abroad or invests in another company abroad. B. investment that occurs when a firm runs its operation domestically, and sells its product abroad. C. when foreign companies buy physical capital from the United States. D. when foreign companies buy and operate physical capital within the United States.
In 2007, the value of the U.S. dollar
a. increased relative to the euro. b. decreased relative to the euro. c. remained stable relative to the euro. d. was equal to the value of the euro.
The economic problem is the study of
a) consumption decisions. b) production technology. c) how society decides what, how and for whom to produce. d) the best way to run society.