What is the goal of the North American Free Trade Agreement (NAFTA, now known as the USMCA)?
To remove trade barriers between Canada, the United States and Mexico
to limit trade among the United States, Canada, and Mexico
to promote trade between the United States and Europe
to protect American businesses in our neighboring counties
2. The economic system used in the United States is best described as?
laissez-faire capitalism - very limited government control and a free market
democratic socialism - some government control and free market
a mixed economy - limited government control and a free market
a command economy - complete government control and no free market
3. Read the excerpt below from a Wall Street Journal article about the GameStop controversy from early 2021. Based off this information, what is the goal of the Securities and Exchange Commission (SEC)?
"Wall Street's main regulator is weighing whether to require more transparency of short selling and the opaque (unclear) network of stock lending and borrowing that facilitates it, according to people familiar with the matter.
The Securities and Exchange Commission (SEC) was ordered 11 years ago to impose such rules, but never did it. Now, dealing with the fallout from frenetic trading in GameStop Corp. shares, the agency under new leadership is considering using its authority to shine more light on the mechanics of the trades."
The SEC is the nation's central bank.
The SEC oversees the stock market and enforces regulations on the companies in the stock exchange.
The SEC regulates economic growth.
The SEC protects workers in the United States.
4. According to this chart, what makes communism unique from other economic systems? Note: in this question the word "state" is referring to the government of an entire country, not the states we have in the United States.
Although the state plays a very limited role in the economy, the government does operate certain enterprises.
The state takes a hands-off approach to the economy, and there is almost no government regulation in place.
Although the state has strong control over the economy, individuals also make many important economic decisions.
The state has total control over the economy, and individuals have no say in the work they do.
5. Which forms of government get their power by force, rather than by the will of the people? (3 points)
parliamentary democracy
monarchy
dictatorship
direct democracy
military junta
6. How does creating increased competition, such as free trade zones, impact supply and demand?
The price of goods goes up due to a decrease in demand.
The price of goods goes up due to an increase in supply.
The price of goods goes down due to an increase in supply.
The price of goods goes down due to an increase in demand.
7. What is a tariff?
A limit put on the amount of a commodity can be imported
A tax on an import
A ban on trade with a certain country
A tax on an export
8. Imposing a tariff on imports from other countries in order to safeguard American industry is known as what?
protectionism
monetary policy
globalization
fiscal policy
9. How do the realities of NAFTA today differ from the expectations presented in this speech?
"In a few moments, I will sign the North American free trade act into law. NAFTA will tear down trade barriers between our three nations. It will create the world's largest trade zone and create 200,000 jobs in this country by 1995 alone. The environmental and labor side agreements negotiated by our administrations will make this agreement a force for social progress as well as economic growth."
-President Bill Clinton, December 8, 1993
U.S. trade in agricultural products has increased.
NAFTA is the world's largest free trade zone.
The United States has signed similar agreements with other countries.
Many high-paying manufacturing jobs have been lost.
10. U.S. foreign policy frequently encourages nations of the world to adopt democratic forms of government with similar human rights standards. What reason might the United States have for treating China differently?
China currently holds trillions in U.S. debt.
China and the United States have an extremely close and special relationship.
China and the United States are engaged in a war in the South China Sea.
China’s human rights policies are more advanced than those in the United States.