Have labor organizations and environmentalists in the United States been generally supportive of or opposed to the North American Free Trade Agreement?
What will be an ideal response?
Both groups tended to oppose NAFTA. First, NAFTA is likely to have a negative impact on employment in certain industries and local areas in the United States. Labor organizations fear that U.S. firms will transfer production facilities to Mexico because of Mexico’s lower wage rates. Second, Mexican border towns tend to be severely polluted. Mexico has less strict anti-pollution laws, so environmentalists fear increased pollution, and labor organizations fear the transfer of facilities to Mexico to avoid tougher U.S. anti-pollution laws.
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A white knight is often sought by the target of a potential takeover in order to force the shareholders to settle for lower dividends
Indicate whether the statement is true or false
Assume that supply decreases greatly and demand decreases slightly. Which of the following will happen?
a. Equilibrium price will fall and equilibrium quantity will rise. b. Equilibrium price will rise and equilibrium quantity will fall. c. Equilibrium price will rise and equilibrium quantity will rise. d. Equilibrium price will fall and equilibrium quantity will fall. e. Neither equilibrium price nor equilibrium quantity will change.
A year-long drought that destroys most wheat crops for the season would shift the:
A. short-run aggregate supply curve only. B. aggregate demand curve only. C. aggregate demand curve, and the short-run aggregate supply curve would shift in response. D. short-run aggregate supply curve and the long-run aggregate supply curve.
Consider a market characterized by the following inverse demand and supply functions: PX = 10 - 2QX and PX = 2 + 2QX. Compute the surplus producers receive when an $8 per unit price floor is imposed on the market.
A. $3. B. $1. C. $5. D. $2.