Which of the following has resulted from the North American Free Trade Agreement (NAFTA)?
a. Domestic producers in the United States, Canada, and Mexico have free access to larger markets.
b. The low wages of Mexican workers have made it virtually impossible for American and Canadian producers to export goods to Mexico.
c. A smaller variety of goods are available to consumers in all three countries.
d. Unemployment has increased in all three countries.
A
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Why is it important for economists to determine whether the velocity of money is constant or whether it is influenced by changes in the transactions demand for money?
Price discrimination is based on differences in ________ among groups of consumers and the differences in ________ that will result.
A. cross elasticities of demand; revenues B. price elasticities of demand; profits C. quantities supplied; marginal revenues D. income elasticities of demand; marginal costs
If U.S. exports of goods and services exceed imports
A. GDP in the United States will be less than the sum of consumption, investment, and government purchases. B. GDP in the United States will exceed the sum of consumption, investment, and government purchases. C. net exports for the United States equals gross investment. D. net exports for the United States equals gross savings.
The quantity theory of money implies that a 3% increase in the money supply will eventually cause
A. a 3% decrease in the unemployment rate. B. a 3% increase in disposable income. C. a 3% increase in real GDP. D. a 3% increase in the price level.