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. presented no real issue about 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.
Ans: 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.
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The features of the U-Form of firm organization are
a. workers have trouble developing a high degree of functional expertise b. it is difficult for employees to share information across positions within a division c. employee evaluation is simplified by managers having similar skill sets than workers d. coordination across divisions is simple and does not take much management time
When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline