Because of NAFTA, the U.S. shifts some of its imports from Europe to Mexico (a member of NAFTA). This is an example of
A) trade deflection.
B) trade diversion.
C) protectionism.
D) rules of origin.
B
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How are depletion and pollution mirror images of the same problem?
What will be an ideal response?
A country produces only pencils and erasers. Pencil production is allocatively efficient if the marginal ________ of a pencil equals the marginal ________ of ________
A) cost; benefit; an eraser B) cost; cost; an eraser C) benefit; benefit; an eraser D) benefit; cost; a pencil
When the economy responds to a supply shock, there is ________ in the short run and ________ in the long run between inflation and unemployment
A) an inverse relationship; no trade-off B) no trade-off; an inverse relationship C) an inverse relationship; an inverse relationship D) no trade-off; no trade-off
If the rate of job finding equals 19%, and the natural rate of unemployment is 5%, then the rate of job separation equals
A) 1%. B) 5.26%. C) 20.8%. D) 26.3%.