Between 1995 and 1998, Soon After NAFTA Took Effect

question 33

Multiple Choice

Between 1995 and 1998, soon after NAFTA took effect,

• A) U.S. imports from Mexico fell, but U.S. exports to Mexico fell even more.
• B) U.S. imports from Mexico increased, but U.S. exports to Mexico increased even more.
• C) total U.S. exports fell, but total U.S. imports fell even more.
• D) total U.S. imports increased, but total U.S. exports increased even more.

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Definitions:

Vertical Distance

The measure of the difference in height between two points, often used in mathematics and geography.

Unit Price

The cost per unit of quantity of a product, allowing consumers to compare prices between different sized packages of the same item.

Competitive Firm

A business that operates in a market where it must compete against other firms for customers and resources.

Economic Profit

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, representing the additional gain above the next best alternative investment.