Which of the Following Statements About the Various Trade Agreements

question 2

Multiple Choice

Which of the following statements about the various trade agreements is true?

• A) MERCOSUR seeks to create an economic juggernaut in United Kingdom.
• B) CACM comprises the countries of Canada,Mexico,and the United States.
• C) ASEAN's primary goal is to promote social and cultural development.
• D) NAFTA was originally known as the European Coal and Steel Community.

---

Definitions:

Herfindahl Index

A measure of market concentration, calculated by summing the squares of the market shares of all firms in the market.

Four-Firm Sales Concentration Ratio

A measure indicating the total market share of the four largest firms within an industry, used to assess the level of market competition.

Geographic Concentration

The phenomenon where certain industries or businesses are clustered in specific regions, often due to advantages like resources or skilled labor.

X-Inefficiency

X-Inefficiency occurs when a firm fails to use its resources efficiently due to a lack of competitive pressure.