Which of the Following Statements About NAFTA Is FALSE

question 40

Multiple Choice

Which of the following statements about NAFTA is FALSE?

• A)NAFTA is a free trade zone and not a customs union
• B)Canada,Mexico,and the U.S.are the only three members of NAFTA
• C)It is difficult to empirically measure the economic effects of NAFTA on the U.S.economy
• D)In the long run,NAFTA will increase the number of low-paid jobs in the U.S
• E)NAFTA is based on the belief that nations,in the aggregate,gain economically from free international trade

---

Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was put into use, reducing its book value on the balance sheet.

Historical Cost

The original monetary value of an asset or investment, as recorded on the financial statements at the time of purchase or acquisition.

Declining-Balance Depreciation

A method of accelerated depreciation where an asset loses value by a fixed rate, resulting in larger depreciation charges in the earlier years and smaller charges in the later years.