When NAFTA Was Approved, Congress Attempted to Soften the Losses

question 205

Multiple Choice

When NAFTA was approved, Congress attempted to soften the losses suffered by some industries by

• A) creating new jobs to hire workers who lost their jobs because of NAFTA.
• B) setting aside funds to support and retrain workers who lost their jobs because of NAFTA.
• C) reducing tariffs.
• D) imposing quotas.

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Definitions:

Contestable Market

A market where companies can enter and exit freely, with low barriers to entry and exit, leading to competitive prices and efficient outcomes.

Low Entry And Exit

Refers to markets where there are minimal barriers to starting or exiting a business, leading to high levels of competition and innovation.

Highly Contested

Describes a situation, item, or issue that is the subject of intense competition or dispute among parties.

Price Searchers

Firms or individuals that have the flexibility to set their prices because they offer unique products or services and face little to no direct competition.