NAFTA Is a Market Zone That Eliminates Tariffs Between the U.S.and

question 15

Multiple Choice

NAFTA is a market zone that eliminates tariffs between the U.S.and _______.

• A) Canada, Mexico, and Costa Rica
• B) Canada and Mexico
• C) Mexico, Honduras, Nicaragua, Costa Rica and Panama
• D) Canada, Mexico, Costa Rica, and Panama
• E) Canada, Costa Rica, and Panama

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Definitions:

Long Run

A period of time in economics during which all factors of production and outputs are variable, allowing for full adjustment to changes.

Perfect Competitor

A theoretical concept in which a market structure has many small sellers, all producing homogeneous products with no control over market price.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, representing additional gain over and above normative expectations.

ATC

Average Total Cost, which is calculated by dividing the total cost by the quantity of output produced.