Canada

What does NAFTA stand for?

• North American Farm Trading Association

• North America Free Trade Association

• North American Foreign Trade Agreement

• North American Free Trade Agreement

Why was NAFTA important to trade between the US, Canada and Mexico?

• NAFTA removed all trade barriers between the countries

• NAFTA added tariffs to beef from Mexico

• NAFTA made imports to Canada more expensive.

• NAFTA helped Canada export its goods to the Europe more freely.

What kind of economy does Canada have?

• Pure Market

• Mixed

• Command

• Traditional

Based on the market continuum, what country has the most economic freedom?

• Cuba

• Mexico

• US

• Canada

Based on the market continuum, what country is it hardest to start a business?

• US

• Canada

• Mexico

• Cuba

Canada has begun importing timber from other countries. The Canadian timber producers have had to lower their prices to compete. The government has stepped in to protect the Canadian timber producers by adding a trade barrier that will help protect Canada timber producers, and make their products more attractive to consumers. Based on what you know about trade barriers, what did the government do?

• imposed an embargo on all imports of timber.

• put a quota in imported timber so consumers will be encouraged to buy Canadian timber products.

• imposed sanctions on outside timber products

Canada invests in human capital, what is most likely true:

• Canada has a high literacy rate

• Canada has a low literacy rate

• Canada does not care about education

• Canada invests in computers and technology

How are literacy rate and standard of living related?

• A country with a low literacy rate typically has a high standard of living

• A country with a low literacy rate typically has an above average standard of living

• literacy rate and standard of living are not related

• a country with a high literacy rate typically has a high standard of living.

How does investment in human capital impact a country?

• Investment in human capital improves literacy rates and also improves economic growth

• human capital makes trade easier

• investment in human capital makes technology more expnesive

• investment in human capital lowers standard of living, a goal of each country.

Thomas has started a shop that sells soccer equipment. What statement is true about Thomas?

• Thomas is a natural resource

• Thomas is a capital good

• Thomas is an entrepreneur

• Thomas is a representative of the government.