Using a Model of Imperfect Competition, Economist Daniel Trefler Concluded

question 98

Multiple Choice

Using a model of imperfect competition, economist Daniel Trefler concluded that the North American Free Trade Agreement:

• A) cost Canada more than 100,000 jobs that were never replaced.
• B) caused no job loss in Canada.
• C) caused Canada to lose 5% of jobs in manufacturing because Canadian tariffs had to be cut, but over time the trade agreement created higher productivity and more jobs to offset losses.
• D) created new jobs in Canada from day one, as firms sold across the border and undercut U.S. firms.

Understand the theoretical foundations and implications of the Phillips curve.

Identify the effects of aggregate demand and supply shocks on the economy.

Comprehend the concept of monetary neutrality and its long-term implications.

Analyze the influence of government policies on the natural rate of unemployment.

---

Definitions:

Norms

Shared guidelines or rules within a group or society that dictate expected behaviors and attitudes.

Moreland And Levine's Theory

A model detailing the processes through which individuals join groups, become integrated into them, and eventually leave them, highlighting the stages of exploration, assimilation, and exit.

Commitment

The state or quality of being dedicated to a cause, activity, or organization, often reflected in a willingness to give time and energy to it.

Role Ambiguity

The uncertainty or lack of clarity surrounding the expectations, responsibilities, or duties of a particular role within an organization or group.