Describe the potential benefits and the potential costs to global trade of the tremendous growth in regional trade agreements
What will be an ideal response?
A regional trade agreement creates preferential treatment for nations that are participants, which violates the idea of MFN status in multilateral agreements, where nations agree to treat all participants the same. The WTO recognizes that regional agreements destroy some opportunities for trade by making non-members face higher barriers than members of the regional agreement. But it believes that they create more trade than they divert, and the regional agreements allow nations to try out arrangements that may later be adopted more broadly.
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Refer to Common Property II. If the common property is privately owned, the owner earns revenue equal to
a. Area C + D. b. Area F + G. c. Area C + D + F + G. d. zero.
Educational reforms that result in improved reading and math skills of high school graduates as they enter the labor force would do what to the aggregate supply curve?
A. Shift the curve outward. B. Shift the curve inward. C. Move the economy up along the curve. D. Move the economy down along the curve.
The long-run equilibrium for a firm in an information product industry exists at a point at which
A. marginal cost exceeds marginal revenue. B. average total cost is minimized. C. the demand curve is tangent to the average total cost curve. D. the demand curve crosses the marginal cost curve.
FIRREA increased the core-capital leverage requirement for thrift institutions from 3% to
A) 8%. B) 5%. C) 10%. D) 25%