Recent international trade agreements such as NAFTA have reduced tariffs and import quotas between the U.S. and its trading partners. Reduction of barriers to international trade are likely to
a. shift the U.S. production possibilities curve outward.
b. allow U.S. citizens to consume combinations of goods and services that lie above points on the U.S. production possibilities curve.
c. reduce jobs in all U.S. industries.
d. raise prices.
d. raise prices.
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A U.S. citizen buys a newly issued share of stock in England, paying for his order with a check, which the British company deposits in its own U.S. bank account in New York. How is this transaction accounted for in the balance of payments?
A) financial account, U.S. asset export B) current account, U.S. service import C) current account, British good export D) financial account, British asset import E) financial account, U.S. asset import
When competition is present and property rights secure, people will be encouraged to
a. plunder the resources of others. b. pay the lowest possible wages. c. provide others with things that they value in exchange for income. d. Invest in other countries where markets are less competitive and property rights less secure.
Which of the following is not an advantage of a multilateral approach to free trade over a unilateral approach?
a. A multilateral approach can reduce trade restrictions abroad as well as at home. b. A multilateral approach has the potential to result in freer trade. c. A multilateral approach requires the agreement of two or more nations. d. A multilateral approach may have political advantages.
What is a closed shop?
a. No union members may be hired. b. Hiring to the maximum level is complete. c. The employees have rejected the union. d. Only union members can be hired.