Refer to the Figure Below to Answer the Following Questions

question 128

Multiple Choice

Refer to the figure below to answer the following questions. Figure 7.3.1
The figure shows the market for shirts in Canada,where D is the domestic demand curve and S is the domestic supply curve.The world price is $20 per shirt.Canada imposes a tariff on imported shirts of $4 per shirt.
-Refer to Figure 7.3.1.The tariff ________ the domestic production of shirts in Canada by ________ per year.

• A)increases;8 million
• B)decreases;16 million
• C)increases;4 million
• D)decreases;8 million
• E)increases;24 million

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Definitions:

Risk-Free Asset

Risk-Free Asset is an investment with no risk of financial loss, often represented by government bonds of stable economies.

Asset Allocation

Allocating a portfolio across broad asset classes such as stocks versus bonds.

Risk-Free Asset

An investment with a guaranteed return and no risk of loss, often exemplified by government bonds of stable countries.

Risky Asset

An investment that holds some risk of losing value, as opposed to a guaranteed or risk-free asset, offering potentially higher rewards in exchange for higher risk.