One reason why most economists forecast that the effects of NAFTA on the U.S. economy would be small is because
A) NAFTA does not bring down tariffs far enough.
B) the Mexican economy is small relative to the U.S. economy.
C) NAFTA trade opening provisions only cover a handful of sectors.
D) Mexico was not expected to live up to its obligations under the agreement.
E) the United States was not expected to live up to its obligations under the agreement.
B
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When accounting profits are negative, economic profits
A) must be positive. B) will be negative. C) will equal zero. D) could be positive, negative or zero.
Many eligible voters do not vote, and many who do vote don't read the biographies of candidates before they vote. These are examples of
a. the median-voter model b. representative government c. rational ignorance d. stupidity e. laziness
When the government tries to control pollution through cap and trade, it _____
a. issues permits that enables the owners of the permit to pollute b. allows polluting firms to produce public goods that reduce pollution c. levies tax on the polluting firm d. gives subsidies to the firms who adopt clean production technologies e. takes legal actions against the firms who pollute beyond the specified level
When the Fed wants to expand the money supply through open market operation, it
a. sells government securities to the Treasury. b. sells government securities to member banks. c. buys government securities from member banks. d. buys government securities from the Treasury.