Compare and contrast NAFTA and the EU in terms of the types of agreements that they are, the institutions that operate under the agreement, and the long term goals of the arrangements
What will be an ideal response?
NAFTA is a FTA with a limited institutional framework that settles trade disputes between members, and oversees the provisions of side agreements involving labor and the environment. There are no stated long term goals to further integrate any of the three economies. Indeed, it would take a major change of attitudes in both Canada and Mexico to convince either country to pursue further economic integration, especially with the United States. The one long term goal often expressed by the NAFTA countries is to expand the agreement to bring in other countries from the Western Hemisphere such as Chile. The EU is a customs union that hopes ultimately to transform itself into a full economic union with a single currency. The EU has an extensive governmental structure with a parliament, an executive branch and a judiciary.
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Clothing retailers have faced greater competition in recent years as more firms have entered the clothing market. Some of the competition has come from foreign competitors, but much of it is domestic competition
As a result there is much competition in markets for many types of clothing and A) individual buyers and sellers cannot affect the market price because it is determined by the market forces of demand and supply. B) there are no other implications. C) firms have a great degree of flexibility in pricing their products because these products can be sold at a high profit level. D) there are relatively few buyers and sellers in the market, and one individual firm can determine the market price.
Measures of student performance have not increased even though per-pupil government subsidies have increased because
A. parents and children value the last unit of educational services received more than the cost. B. there is a need for more funds to be spent. C. we have declining enrollment in public schools. D. parents and children value the last unit of educational services received less than the cost.
According to the In the News article, "A "War on Coal"?,"
A. The Obama administration concluded that the job losses from regulation are not worth the reduction in pollution. B. The Obama administration is attempted to cut air pollution from coal. C. The coal industry is expanding and producing acid rain. D. The Obama administration wanted to adopt new rules to reduce water pollution from coal mining.
Which is a major criticism of a monopoly as a source of allocative inefficiency?
A. A monopolist fails to expand output to the level where the consumers' valuation of an additional unit is just equal to its opportunity cost B. A monopolist has no incentive to produce efficiently, because even the inefficient monopolist can be assured of economic profits C. A monopolist will always earns profits and that means that prices are too high D. A monopolist has an unfair advantage because it can purchase labor at a lower price than competitive firms can