Since NAFTA Was Signed, Mexico Saw the Productivity of Its

question 8

Multiple Choice

Since NAFTA was signed, Mexico saw the productivity of its firms:

• A) decrease in the nonmaquiladora plants.
• B) decrease in the maquiladora plants.
• C) increase in the maquiladora plants at a faster pace than in the nonmaquiladora plants.
• D) increase in the maquiladora plants at a slower pace than in the nonmaquiladora plants.

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Definitions:

Equilibrium Price

The price at which the inventory of goods available meets the consumer demand in the marketplace.

Equilibrium Quantity

The level of goods or services on offer and in demand at the market's equilibrium price.

Demand Equation

A mathematical representation of the relationship between the quantity demanded of a good and its price, along with other factors like income and prices of related goods.

Supply Equation

An algebraic equation that represents the relationship between the quantity supplied of a good and its price, holding other factors constant.