Refer to the Figure Below to Answer the Following Questions

question 61

Multiple Choice

Refer to the figure below to answer the following questions. Figure 7.3.1
The figure shows the market for shirts in Canada,where D is the domestic demand curve and S is the domestic supply curve.The world price is $20 per shirt.Canada imposes a tariff on imported shirts of $4 per shirt.
-Refer to Figure 7.3.1.The tariff ________ Canada's imports of shirts by ________ million shirts per year.

• A)decreases;16
• B)decreases;8
• C)increases;8
• D)increases;4
• E)increases;16

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Definitions:

Foreign Investments

Investments made by individuals, companies, or governments in business interests in a country other than their own, often through direct investments or purchasing stocks.

Economic Policy

Actions taken by government to influence its economy through taxation, spending decisions, and fiscal management.

Multinational Corporation

A large company that operates in multiple countries around the world, beyond its home country.

Facilities

Buildings, equipment, services, and other resources provided for a specific purpose or activity.