Which of the following regional trade agreements is a free-trade area?
a. NAFTA
b. the European Union
c. Mercosur
d. NATO
Ans: a. NAFTA
You might also like to view...
Which of the followings statements correctly identifies an advantage of using foreign aid to eradicate poverty?
A) It is extremely efficient in countries where institutions are extractive. B) It directly increases the efficiency of production in poorer countries. C) Its flow is transparent and can be questioned by all individuals in the receiving country. D) It leads to a redistribution of income around the world.
Suppose your expenses for this term are as follows:
tuition: $5,000, room and board: $3,000, books and other educational supplies: $500. Further, during the term, you can only work part-time and earn $4,000 instead of your full-time salary of $10,000. What is the opportunity cost of going to college this term, assuming that your room and board expenses would be the same even if you did not go to college? A) $5,500 B) $8,500 C) $11,500 D) $14,500
Classical economists argue that
A) the government should have an active role in the economy. B) government policies will be ineffective and counterproductive. C) the government should actively intervene in the economy to eliminate business cycles. D) wages and prices don't adjust quickly, so the economy is slow to return to equilibrium.
Which of the following best explains why the elasticity of supply of labor for an individual with a Cobb-Douglas utility function (for consumption and leisure) is zero?
a. Income and substitution effects are precisely offsetting. b. The elasticity of substitution of leisure for consumption is zero. c. Leisure is an inferior good. d. Consumption is subject to diminishing marginal utility.