If Canada Reduces the Tariff Imposed on a Commodity from 10

question 20

Multiple Choice

If Canada reduces the tariff imposed on a commodity from 10 percent to 5 percent, we would expect to observe

• A)a downward shift in the commodity's demand curve.
• B)an increase in the amount of the commodity imported into Canada.
• C)an upward shift in the commodity's demand curve.
• D)an increase in Canada's terms of trade.
• E)an increase in tariff revenue by the Government of Canada.

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Definitions:

Spontaneous

Occurring without apparent external cause, impulsive or arising from a natural inclination or impulse.

Voluntary

Undertaken by choice or without coercion; an act done willingly.

Norms

Shared standards or rules that govern behaviors within a group or society, indicating what is considered appropriate or acceptable.

Morals

Principles or beliefs concerning what is right and wrong behavior, guiding individual conduct and decision-making.