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The North American Free Trade Agreement (NAFTA) is a trade agreement between the United States, Canada, and Mexico whose purpose is to eliminate tariffs between the countries and promote all aspects of international trade. There are many arguments for and against the treaty. One of the arguments against centers on the fact that Mexican industries do not have to meet the same environmental regulations as industries in the United States and Canada. The U.S. and Canada have intervened in the marketplace and tried to internalize some of the costs of pollution by placing regulations on the amount of pollutants that industries can emit. Opponents of NAFTA point out that pollution is largely a free good in Mexico, and that being free to pollute gives industries in Mexico an economic advantage over those in the U.S. and Canada. Is there anything in what we have studied, that can point us towards an equitable solution to this problem while still protecting the environment we all share? What is that solution?
Elucidate in detail the interrelationships between economic facts, theory, and policy. Critically evaluate this statement: "The trouble with economics is that it is not practical. It has too much to say about facts."
What is this firms total cost function, average cost function, average variable cost function and marginal cost function.
A nation whose interest rate is rising more rapidly than interest rates in other nations can expect the international value of its currency to appreciate.
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Elucidate how does N the number of firms in the market, affect each firms Demand curve. Explain why.
Health officials have suggested that the spread of AIDS can be partly contained if more males use condoms.
Estimate and explain how the electrical monopolist would determine its profit-maximizing price and output level.
Your friend makes half of your salary and pays 20% in income taxes. Elucidate rate most likely would be your income tax rate.
Suppose that re are 10 million workers in Canada and that each of these workers can produce either 2 cars or 30 bushels of wheat in a year. What is opportunity cost of producing a car in Canada.
Why is an increase in number of varieties of a good regarded as a gain from trade. Can you think of economic disadvantages associated with greater product variety.
Assume you are looking at data for an economy that uses only two inputs, physical capital and labour. Table shows output for different combinations of labour and capital.
You have been asked by your supervisor to evaluate a new proposal designed to cut costs. Under the plan, workers would be paid a fixed wage of $8 per hour.
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