The political debate over joining NAFTA was especially contentious in the United States because Mexico's standard of living (including wage rates, labor standards, and environmental standards) is low relative to the U.S. standard of living

Figure 10-9

The output of the economy depicted in is
a.
equal to the full-employment output level.
b.
less than the full-employment output level.
c.
greater than the full-employment output level.
d.
sustainable in the long run.

The General Agreement on Tariffs and Trade is an international agreement

A. to establish the North American continent as a free trade area. B. to encourage world trade by lowering tariffs and other trade barriers. C. to make all tariffs illegal. D. to encourage peaceful settlements of trade disputes, but has no particular point of view about the desirability of higher or lower tariffs.