Which of the Following Statements Is Untrue Regarding NAFTA and Nontariff

question 36

Multiple Choice

Which of the following statements is untrue regarding NAFTA and nontariff barriers?

• A) Most nontariff barriers were to be eliminated within five years under NAFTA.
• B) NAFTA prohibits new export taxes on goods under any circumstances.
• C) Special rules allow each country to impose import restrictions to protect human, animal or plant life, or the environment.
• D) Customer user fees were to be eliminated by 1999.

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Definitions:

Break-even

The point at which total costs and total revenues are equal, meaning that there is no net loss or gain from the business activities.

Marginal Cost

The expense associated with the production of an extra single unit of a good or service.

Perfectly Competitive

A market structure characterized by many buyers and sellers, free entry and exit, homogeneous products, and perfect information among consumers and producers.

Perfect Competitor

A theoretical market structure characterized by many buyers and sellers, homogeneous products, and no barriers to entry or exit, leading to perfect information and no control over prices.