Which of the Following Has Been an Outcome of the North

question 123

Multiple Choice

Which of the following has been an outcome of the North American Free Trade Agreement (NAFTA) ?

• A) A lower standard of living in Canada,Mexico,and the United States.
• B) Lower wages in the United States and Canada.
• C) Increased trade among Canada,Mexico,and the United States.
• D) Lower wages and reduced employment in Mexico.

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Definitions:

Long-run Equilibrium

A state in which all factors of production and costs are variable, allowing firms to make adjustments, resulting in no economic profit in perfect competition.

Excess Capacity

Refers to the situation where a firm produces at a level less than its potential output, leading to underutilized resources.

Short Run

A period of time in which at least one input (typically capital) is fixed, affecting the firm's capacity to adjust its production levels.

Efficient Use

The optimization of resources to achieve the highest possible output or benefit with the least amount of input or waste.