The Table Below Shows the Prices in Canada of One

question 72

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
-A common argument for the use of tariffs when the objective is to maximize a country's national income would be to

• A)increase the prices of domestic exports.
• B)improve the country's terms of trade.
• C)prevent learning- by- doing by potential trade partners.
• D)enjoy the advantages of diversification.
• E)subject infant industries to the discipline of the market.

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Definitions:

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Clay-based ceramic that is shaped, dried, and then painted before being fired in a kiln.

Material

The substance or matter from which something is or can be made, often used in relation to art, construction, and manufacturing.

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An Etruscan burial chamber in Cerveteri, Italy, known for its detailed reliefs and decorations representing daily life and the afterlife.

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