The Table Below Shows the Prices in Canada of One

question 30

Multiple Choice

The table below shows the prices in Canada of one kilogram of cheddar cheese produced in three different countries.Assume that all cheddar cheese is identical. $$\begin{array} { | l | c | c | } \hline \text { Producing Country } & \text { Canadian Price in } \$ & \text { C anadian Price in } \$ \\\hline & \text { Free Trade } & 40 \% \text { Import Tariff } \\\hline \text { Canada } & 10.00 & \\\hline \text { United Kingdom } & 9.00 & \\\hline \text { United States } & 8.00 & \\\hline\end{array}$$ TABLE 34- 1
-Refer to Table 34- 1.Suppose Canada and the United Kingdom negotiate a free- trade agreement in cheese.But Canada has a 40% tariff on cheese imported from other countries.From which country will Canada now buy its cheese?

• A)from Canada and United States
• B)all from the United States
• C)from United Kingdom and United States
• D)all from Canada
• E)all from United Kingdom

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Definitions:

Monetary

Pertaining to currency or money, including policies, management, and the overall financial system that regulates money supply and interest rates in an economy.

Fiscal Policies

Government policies related to taxation and spending with the aim of influencing economic conditions.

Fiscal Policy Stimulus

Government measures, typically involving increased public spending and tax cuts, aimed at boosting economic activity.

Interest Rates

The cost of borrowing money or the reward for saving, usually expressed as a percentage of the amount borrowed or saved.