A free-trade area is:
a. a group of countries that agrees there will be "no rules" about trade—anything goes.
b. a group of countries that agrees to eliminate customs fees and containerized shipping charges on goods traded among them.
c. a group of countries that agrees to eliminate barriers to trade between themselves while keeping tariffs in place against the rest of the world.
d. a group of countries that eliminates trade barriers among themselves and erects a common tariff against all other nations
Ans: c. a group of countries that agrees to eliminate barriers to trade between themselves while keeping tariffs in place against the rest of the world.
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A. shift the industry supply curve to the left. B. cause the market price to rise. C. eliminate the losses of existing firms in the industry. D. All of the responses are correct.
A lender need not be penalized by inflation if the
A. short-term rate of inflation is less than the long-term rate of inflation. B. long-term rate of inflation is less than the short-term rate of inflation. C. lender correctly anticipates inflation and increases the nominal interest rate accordingly. D. inflation is unanticipated by both borrower and lender.
Suppose the demand for widgets is given by QD = 100 - 5p - pd + 2I, where I is average consumer income, p is the price of lemons, and pd is the price of doodads. According to this equation, doodads are a(n) ________ for widgets
A) substitute B) complement C) input D) None of the above
Both an NBA basketball player and a fast-food cook are going to graduate school. Who has a higher opportunity cost? Explain
What will be an ideal response?