Which of the following is often used to describe regional trade agreements that discriminate, giving better tariff treatment to other nations in the agreement over outside nation?
a. super-regionals
b. preferential trade agreements
c. exclusive trade arrangements
d. equity trade agreements
Ans: b. preferential trade agreements
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Assume there are no taxes or imports. The government estimates that between 2012 and 2013 disposable income decreased by $400 billion and consumption expenditure decreased by $280 billion. Based on this data, the multiplier equals:
a) 0.33 b) 0.7 c) 1.42 d) 3.33
In a purely competitive industry, each firm:
A. produces a differentiated product. B. can easily enter or exit the industry. C. engages in forms of nonprice competition. D. is a price maker.
Assume that an economy experiences both positive population growth and technological progress. Once the economy has achieved balanced growth, we know that output (Y) is
A) constant. B) growing at a rate of gA + gN. C) growing at a rate of gN. D) growing at a rate of gA. E) growing at a rate of gA - gN.
In general, an externality is created when
A) people are affected (other than by price) by a transaction which they were not part of. B) firms produce a product of low quality and consumers don't like it. C) firms have to pay for polluting the environment. D) the government subsidizes education.