A free-trade area is:
a. a group of countries that agrees there will be "no rules" about trade—anything goes.
b. a group of countries that agrees to eliminate customs fees and containerized shipping charges on goods traded among them.
c. a group of countries that agrees to eliminate barriers to trade between themselves while keeping tariffs in place against the rest of the world.
d. a group of countries that eliminates trade barriers among themselves and erects a common tariff against all other nations
Ans: c. a group of countries that agrees to eliminate barriers to trade between themselves while keeping tariffs in place against the rest of the world.
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In the above figure, the letters A, B, and C represent which positions in the business cycle?
A) peak, expansion, and recession, respectively B) recession, expansion, and peak, respectively C) expansion, peak, and recession, respectively D) peak, recession, and expansion, respectively
Refer to Figure 11-1. Within a country, the impact of wars and revolutions and their subsequent destruction of capital is reflected in the per-worker production function in the figure above by a movement from
A) C to A. B) A to B. C) B to A. D) B to C.