Which of the following correctly identifies the impact of the formation of the North American Free Trade Agreement (NAFTA) on Mexico?
A. Mexican exports of fruits and vegetables to the United States declined substantially.
B. NAFTA allowed Mexico to better exploit its comparative advantage in such products as apparel and food crops.
C. After Mexico joined NAFTA, the average wage rates for the unskilled workers declined.
D. Mexico's import of financial services and high-tech equipment from the United States declined.
Answer: B
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The basic difference between macroeconomics and microeconomics is that: a. microeconomics looks at aggregate markets while macroeconomics is concerned with individual markets. b. macroeconomics is concerned with policy decisions while microeconomics applies only to theory
c. microeconomics is concerned with individual markets while macroeconomics is concerned with aggregate markets. d. macroeconomics is concerned with positive economics while microeconomics is concerned with normative economics.
Which of the following statements concerning the First Bank of the United States is not true?
a. Its creation was proposed by Alexander Hamilton. b. States' rights advocates opposed its creation. c. It could present state bank notes to the state banks for payment in specie. d. It was the first central bank in the world. e. It was able to control the money supply.
Which of the following is a difference between a bond and a stock? a. The owner of a bond can sell it many times, while a stock remains with its first owner
b. Typically, governments and corporations borrow through a bond market, while a stock market is the most common source of funds for households. c. The owner of a bond earns interest on the money that is paid to buy it, while the owner of a stock owns an equity in the company that issues the stock. d. The owner of a bond owns an equity in the company that issues the bond, while the owner of a stock earns interest on the money that is paid to buy it.
Answer the following statements true (T) or false (F)
1. The free-rider problem makes a good highly profitable for a private firm to provide. 2. The free-rider problem refers to the local government's problem of finding funds to subsidize public transportation. 3. Rivalry means that when one person buys and consumes a product, it is not available for purchase and consumption by another person. 4. The government receives all of the benefits associated with the production of a public good.