Which of the Following Has Resulted from the North American

question 99

Multiple Choice

Which of the following has resulted from the North American Free Trade Agreement (NAFTA) ?

• A) trade between the United States and Mexico increased.
• B) trade between the United States and Canada increased.
• C) the joint output of the United States, Mexico, and Canada has increased.
• D) all of the above are correct.

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Definitions:

Natural Resources

Resources present in nature, like minerals, forests, water, and fertile lands, that can be tapped for making money.

Absolute Advantage

The ability of a country or individual to produce a good or service more efficiently than other countries or individuals, using fewer resources.

Production Possibilities Frontiers

A curve depicting the maximum output combinations of two goods that can be produced given the resources and technology.

Opportunity Cost

The value of the best alternative that must be forgone when making a choice.