If All Tariffs (And Quotas)between Countries on the North American

question 39

Multiple Choice

If all tariffs (and quotas) between countries on the North American continent were eliminated,

• A)small Central American countries would be hurt because they would be unable to compete with larger nations.
• B)the United States would gain at the expense of the less-developed North American countries.
• C)the combined wealth of the countries would increase because elimination of trade restrictions would permit greater gains from specialization.
• D)wage rates in the United States would decline to the average for the North American continent.

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