Criticisms against the North American Free Trade Agreement include all of the following except ?

A. Wages in the united states will rise relative to mexican wages
B. American jobs will be lost to workers in mexico
C. The environment is not adequately protected by nafta
D. None of the above

Profit-maximizing firms want to maximize the difference between ?

A. Marginal revenue and marginal cost.
B. Total revenue and total cost
C. Total revenue and marginal cost
D. Marginal revenue and average cost

Which of the following is most likely to be a variable cost for a firm ?

A. The franchiser’s fee that a restaurant must pay to the national restaurant chain
B. The payroll taxes that are paid on employee wages.
C. The monthly rent on office space that it leased for a year
D. The interest payments made on loans.

________ is said to exist when the formation of a regional trading group leads to the reduction of trade with nonmember countries in favor of member countries ?

A. Trade creation
B. Trade diversion
C. Trade exclusion
D. Trade distortion

If A imposes a per unit tariff of $10 on imports from both B and C A will import ?

A. 400 units from b
B. 200 units from c
C. 200 units from each
D. 400 units from b and 200 units from c

If A forms a customs union with C, the value of trade diversion will be ?

A. $0
B. $10,000
C. $20,000
D. $40,000

The European Union is an example of a/an ?

A. Customs union
B. Economic union
C. Common market
D. Free trade area

The implementation of the European Union has ?

A. Made it harder for americans of compete against the germans in the british market
B. Made it easier for americans to compete against the germans in the british market
C. Made it harder for americans to compete against the japanese in the british market
D. Made it easier for americans to compete against the japanese in the british

As of 2002, the ________ became the official currency union of the European Monetary System ?

A. Dollar
B. Mark
C. Franc
D. Euro

The implementation of a common market involves all of the following except ?

A. Elimination of trade restrictions among member countries
B. A common tax system and monetary union
C. Prohibition to restriction on factor movements
D. A common tariff levied in imports from nonmembers