A Rise in the Price of Imports or a Fall

question 145

Multiple Choice

A rise in the price of imports or a fall in the price of exports will:

• A) Improve the terms of trade
• B) Worsen the terms of trade
• C) Expand the production possibilities curve
• D) Contract the production possibilities curve

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Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed, which can vary based on income level, type of income, and other factors.

CCA Class

Canadian Controlled Private Corporation (CCA) Class refers to a system of categorizing assets for tax depreciation purposes in Canada, allowing businesses to claim the cost of capital assets over time.

Tax Bracket

A range of incomes taxed at a particular rate, which forms part of a progressive taxation system where tax rates increase with income.

Cost-Cutting

The process of reducing expenses to improve profitability without compromising the core activities of an organization.