The most-favored-nation clause in U.S. trade agreements:
A. Gives special favors to Canada and Mexico because these nations border the United Sates
B. Provides a comparative advantage in trade to those nations that have higher domestic opportunity costs in producing a product
C. Means that lower tariffs negotiated with one nation with most-favored-nation status also apply to other nations with most-favored-nation status
D. Offers favorable treatment to less developed nations to help improve economic growth in their economies
C. Means that lower tariffs negotiated with one nation with most-favored-nation status also apply to other nations with most-favored-nation status
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Answer the following statement true (T) or false (F)
How are rule-based policies similar to adaptive expectations?
What will be an ideal response?
Answer the following statements true (T) or false (F)
1. The budget line shows the various incomes that an individual can earn from different jobs. 2. The fundamental economic problem faced by a society is that productive resources are so varied and versatile, that it is hard to decide what to do with them. 3. The resource category called "land" includes forests, animals, and water resources. 4. When economists talk about the capital resources in the economy, they are referring to the amount of money circulating in the economy.
Figure 6.3 shows the cost structure of a firm in a perfectly competitive market. The firm will stay in the market in the long run only if the market price is greater than or equal to:
A. $4.50. B. $6. C. $10. D. $15.