Contemporary America #2

How does the North American Free Trade Agreement (NAFTA) of 1993, reflect the principle of free enterprise?

• A It requires a minimum wage for workers in Mexico and Canada.

• B It has increased labor union membership in the U.S.

• C It opens U.S. borders to unrestricted trade from all countries

• D It has eliminated economic restrictions on products coming from Mexico and Canada

The United States extends MOST favored nation status to other countries in order to--

• F exercise limited trade restrictions.

• G form established free trade zones.

• H organize economic commonwealths.

• J acknowledge negative human rights records.

Which of the following explains why the George W. Bush administration viewed the Kyoto Treaty on global warming to be harmful to the U.S. economy?

• A International arrangements are difficult to enforce.

• B Restrictions on certain emissions would cripple industrial output.

• C The president intended to research other scientific alternatives.

• D The president believed that ecological issues did not affect business profits.

How do international tariffs reduce free trade between the United States and developing nations?

• F They require that certain crops be grown in developing countries.

• G They raise the prices of agricultural products from developing countries.

• H They encourage farmers in developing countries to grow genetically altered agricultural products.

• J They protect farmers in developing countries from competition.

The Oil Price Safeguard Act would help to moderate sharp spikes in oil and gas prices caused by price fixing and production quotas through the judicious use of our enormous petroleum reserves.

The global oil market is dominated by an international cartel with the ability to dramatically affect the price of oil. The eleven member countries . . . supply over 40 percent of the world's oil and possess 78 percent of the world's total proven crude oil

reserves. Their control of the world's oil supply allows these countries to collude to drive up the price of oil.

Senator Susan Collins, speech on the Senate floor, November 17,1999

In this excerpt, Senator Collins proposed legislation intended to address

• A Iraqi aggression against neighboring countries

• B the refusal of the Israeli government to recognize Palestine

• C the collective economic power of OPEC member nations

• D the formation of a military coalition among Arab states

Which of the following best completes this diagram?

• F Decreased availability of raw materials

• G Lower rates of personal savings

• H. Increased business competition

• J Greater influence for labor unions

Which of the following correctly completes this description?

• A North American Free Trade Agreement

• B Organization of Petroleum Exporting Countries

• C General Agreement on Tariffs and Trade

• D North Atlantic Treaty Organization

Lines for gas such as the one in this photograph resulted from

• F the dissolution of Standard Oil Company

• G an oil rig explosion in the Gulf of Mexico

• H the construction of the trans-Alaska pipeline

• J an embargo by the Organization of the Petroleum Exporting Countries