The North American Free Trade Agreement signed in 1993 lowered tariffs among the United States, Canada, and Mexico. What would proponents of the treaty consider to be the likely benefits?
What will be an ideal response?
ANS:
By permitting freer exchange, the treaty will promote more specialization and exchange in keeping with the principle of comparative advantage, thereby increasing income and wealth.
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If a project costs $600 today and returns $630 next year, the highest interest rate at which the project should still be undertaken is five percent
Indicate whether the statement is true or false
Refer to the scenario above. If you invest your money in the bank, you will receive ________ on maturity
A) $172,304.74 B) $898,797.66 C) $3,521,725.58 D) $4,020,025.01
A government budget surplus
A) decreases a country's ability to finance domestic and foreign investment. B) increases a country's ability to finance domestic and foreign investment. C) increases a country's ability to finance domestic investment and decreases its ability to finance foreign investment. D) decreases a country's ability to finance domestic investment and increases its ability to finance foreign investment.
Which of the following is likely to provide teenagers with the greatest incentive not to buy one more pack of cigarettes?
a. public service television advertisement featuring Jennifer Lopez urging kids to refrain from smoking b. an additional $2.00 per-pack tax on cigarettes c. citing moral grounds, Leonardo DiCaprio refuses to play any part in which he will be seen smoking d. a law prohibits anyone from smoking in public buildings