This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: The United States and Mexico recently negotiated a trade agreement that eliminated many of the ... (Read 100 times)

erika

  • Hero Member
  • *****
  • Posts: 522
on: Jul 1, 2018
The United States and Mexico recently negotiated a trade agreement that eliminated many of the restrictions on trade between the two countries.
 
  a. Using the tools of microeconomics, describe how such an agreement will benefit both the USA and Mexico.
  b. Will everyone benefit from such an agreement? who stands to lose from such an agreement. Why?

Question 2

Refer to Figure 14.3. To maximize economic rent, the labor union will agree to wage rate:
 
  A) W0.
  B) W1.
  C) W2.
  D) W3.
  E) none of the above


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Smiles0805

  • Sr. Member
  • ****
  • Posts: 305
Reply #1 on: Jul 1, 2018
Answer to Question 1

a.
See section 16.5 of text.

b.
Not everyone will benefit from the elimination of trade restrictions. The US and Mexico will tend to specialize in the industries for which they have a comparative advantage. Therefore, some US industries will expand while others will contract and likewise for Mexico. The workers in the contracting industries in each country will lose from such an agreement.

Answer to Question 2

D


erika

  • Member
  • Posts: 522
Reply 2 on: Jul 1, 2018
Great answer, keep it coming :)

raenoj

  • Member
  • Posts: 340
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

About 600,000 particles of skin are shed every hour by each human. If you live to age 70 years, you have shed 105 pounds of dead skin.

Did you know?

Hip fractures are the most serious consequences of osteoporosis. The incidence of hip fractures increases with each decade among patients in their 60s to patients in their 90s for both women and men of all populations. Men and women older than 80 years of age show the highest incidence of hip fractures.

Did you know?

Chronic necrotizing aspergillosis has a slowly progressive process that, unlike invasive aspergillosis, does not spread to other organ systems or the blood vessels. It most often affects middle-aged and elderly individuals, spreading to surrounding tissue in the lungs. The disease often does not respond to conventionally successful treatments, and requires individualized therapies in order to keep it from becoming life-threatening.

Did you know?

Illicit drug use costs the United States approximately $181 billion every year.

Did you know?

It is widely believed that giving a daily oral dose of aspirin to heart attack patients improves their chances of survival because the aspirin blocks the formation of new blood clots.

Ethnic Variations in Prenatal Care within the United States Ethnic Variations in Prenatal Care within the United States
Tom Wills-Wright, Burj Al-Arab, Dubai, United Arab Emirates. Tom Wills-Wright, Burj Al-Arab, Dubai, United Arab Emirates.
Prevalence and Sex Distribution of Top 10 Autoimmune Diseases Diagnosed in the United States Prevalence and Sex Distribution of Top 10 Autoimmune Diseases Diagnosed in the United States
An example of the sometimes drastic differences in placarding regulations in the United States ... An example of the sometimes drastic differences in placarding regulations in the United States ...
Survivorship curves for people in the United States in the early 20th and early 21st centuries Survivorship curves for people in the United States in the early 20th and early 21st centuries
Kudzu native to Asia is overgrowing trees across the southeastern United States. Kudzu native to Asia is overgrowing trees across the southeastern United States.
Video: Elementary kinetics

For a complete list of videos, visit our video library