USA and Canada Obj 4

NAFTA is an agreement among the U.S., Canada, and Mexico primarily intended to promote

• environmental protection.

• free trade

• human rights

• military defense

What was one criticism (concern) regarding the passage of the North American Free Trade Agreement (NAFTA)?

• U.S. tariffs would decrease profits

• Establishment of similar treaties would hinder economic growth

• Outsourced labor would increase prices of goods

• U.S. companies would move jobs abroad

Which situation BEST describes the concept of the interdependence (depending on each other) among nations?

• establishment by a nation of a system of high protective tariffs

• expansion of international sporting events

• adoption of a policy of economic nationalism

• sales of goods by one nation to obtain resources from another nation

Which of these best explains the reason why NAFTA was established?

• to institute regulations (rules) on quality of imported products

• to improve political negotiations with overseas nations

• to increase the potential for profits in a competitive market

• to create a system to allow citizens to pass freely between borders without passports

Which scenario shows the results of competition in a free enterprise system?

• The price of personal computers decreases as more companies develop computers.

• A personal computer company must use a different song in its ads due to copyright laws.

• Two companies merge to control the market share in an economic sector.

• A business publishes safety information about a product because of state laws.

Which example best describes how the free enterprise system influences technological innovation?

• The government offers incentives (rewards) to discourage the outsourcing of production.

• The government regulates (controls) communications by assigning radio bandwidth.

• Companies compete to develop better cell phones for the market.

• University researchers experiment to increase the number of bushels of corn per acre.

Which statement describes a role of government in a free enterprise system?

• controlling career paths for citizens

• encouraging citizens to become entrepreneurs

• determining (deciding) which goods should be produced

• deciding which businesses are needed

Which result is a benefit (a good thing) of the free enterprise system?

• Monopolies ensure the profitability of specific economic sectors.

• International trade creates a dependency among economic partners.

• Individuals have the freedom to choose what to produce and consume.

• Government officials ensure wealth and resources are distributed efficiently.

What is one negative (bad) consequence of the free enterprise system?

• There are few incentives for innovation.

• There are few options for consumers.

• Wealth is distributed unequally.

• Information for central planning is limited.

Over the last few decades, television programming in the United States has become available through a number of services such as cable, satellite, and the Internet. How does this trend demonstrate an effect of the free enterprise system?

• Increased government regulation has led to higher prices.

• Increased market competition has resulted in more choices for consumers

• Stronger copyright laws have limited access to new shows

• Higher capital costs have resulted in more investment opportunities