What is NAFTA? What have critics and defenders said about it?
What will be an ideal response?
NAFTA is the North American Free Trade Agreement. It formed a free-trade area among the United States, Canada, and Mexico in 1993. This agreement eliminated tariffs among these three nations. Critics in the United States say that it has decreased jobs and that it may become a base for tariff-free imports from Asian nations. Defenders say that it will allow each nation to specialize according to comparative advantage. The act will encourage more investment in Mexico, thus increasing Mexico’s productivity and national output. This result will give Mexico more funds to purchase goods and services from the United States, thus increasing jobs in this nation.
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For any import quota a country imposes, there exists a tariff the country could have imposed that will have the same impact on producers and consumers.
Answer the following statement true (T) or false (F)
In the United States there were legal reserve requirements on time and savings deposits during most of the post-World War II period. Therefore, the money multiplier for the M1 definition was
a. smaller when time and saving deposits increased. b. smaller when time and saving deposits were assumed to be fixed. c. larger when time and saving deposits increased. d. smaller when time and saving deposits decreased.
Which of the following is an example of price discrimination?
a. A Burger King in New York City charging more for a hamburger than a Burger King in Manhattan, Kansas. b. A clothing store offering shirts at ten dollars each or two for fifteen dollars. c. A movie theater charging lower ticket prices to children and senior citizens. d. A car dealer charging higher prices for cars with air conditioning.
Other things the same, the wages in an occupation are likely to be higher the more
a. dangerous the job. b. pleasant the working conditions. c. prestigious the work environment of the occupation. d. desirable the location of the job.