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Question
Which of the following trade agreements is a binding agreement to reduce trade barriers between the United States and Mexico?
a. World Trade Organization
b. Asia Pacific Economic Cooperation
c. North American Free Trade Agreement
d. European Union
e. Central America Free Trade Agreement
Answer
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Suppose Solomon lives in a community with no price controls. What do you expect will happen if his town borders a community where there is a binding price ceiling on most products?
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