Two Major Events That Occurred in 2000 Had a Profound

question 57

Multiple Choice

Two major events that occurred in 2000 had a profound effect on China's economy. One of these is the United States granting normal trade relations (NTR) to China on a permanent basis (PNTR) . What is the other one?

• A) inclusion of state owned companies in NASDAQ
• B) admission to the World Trade Organization
• C) signing of the new ASEAN pact
• D) the handover of Hong Kong by the British to China
• E) inclusion of Hong Kong as a special administrative region (SAR) of China

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Definitions:

Labor Supply

Refers to the total hours that workers are willing and able to work at a given wage rate, in a given period.

Deadweight Loss

The drop in economic efficiency due to the inability or failure of a good or service to reach its equilibrium state.

Government Revenue

The total income received by the government from taxes, fees, and non-tax sources like government-owned enterprises and foreign aid.

Tax Rate

The share of an individual's or corporation's income that is subject to taxation.