When a Country Allows Trade and Becomes an Exporter of a Good,which

question 12

Multiple Choice

When a country allows trade and becomes an exporter of a good,which of the following is not a consequence?

• A)The price paid by domestic consumers of the good increases.
• B)The price received by domestic producers of the good increases.
• C)The losses of domestic consumers of the good exceed the gains of domestic producers of the good.
• D)The gains of domestic producers of the good exceed the losses of domestic consumers of the good.

---

Definitions:

PV Of CCA Tax Shield

The present value of capital cost allowance tax shield, which represents the discounted value of tax savings due to depreciation expenses.

PV Of After-Tax Lease Payments

The present value of after-tax lease payments is the current worth of all lease payments to be made over the lease term, adjusted for taxes.

Original Investment

The initial amount of money or capital put into an investment vehicle or project.

PV Of CCA Tax Shield

The present value of the tax savings a company realizes from being able to deduct the Capital Cost Allowance on its tax return.