Suppose that tomatoes from Mexico face a 20 percent tariff in the United States and a 25 percent tariff in Canada. If the United States and Canada maintain free trade between each other, the these two countries belong to a ?

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

Which factor of production in the United States is most likely to be made worse off (its factor payment will decrease) because of the North American Free Trade Agreement ?

A. Capital
B. Land
C. Skilled labor
D. Unskilled labor

The Common Agricultural Policy of the European Union has ?

A. Increase american farm exports to the eu
B. Decrease american farm exports to the eu
C. Lowered the price of american farm exports to the eu
D. Not affected the price of american farm exports to the eu

When several countries jointly impose common external tariffs, eliminate tariffs on each other, and eliminate barriers to the movement of labor and capital among themselves, they have formed a/na ?

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

Under the Common Agricultural Policy exports of any surplus quantities EU produce are encouraged through the usage of ?

A. Variable levies
B. Export subsidies
C. Trigger prices
D. Countertrade

In free trade A will import ?

A. 700 units from country c
B. 700 units from country c and 600 units from country b
C. 600 units from country c
D. 600 units from country c and 400 units from country b

Speculative bubbles may occur in the shares market ?

A. During periods of extreme pessimism because so many stocks become undervalued
B. Only when people are irrational
C. When stocks are fairly valued
D. Because rational people may buy an overvalued share if they think they can sell it to someone for even more at a later date

Members of the EU find that trade creation|| is fostered when their economies are ?

A. Highly competitive
B. Highly noncompetitive
C. Small in economic importance
D. Geographically distant

Which country is not a member of the European Union ?

A. Spain
B. Germany
C. France
D. Iceland

The study of a company’s accounting statements and future prospects to determine its value is known as ?

A. Information analysis
B. Risk management
C. Fundamental analysis
D. Diversification