Use the Information Below to Answer the Following Questions

question 35

Multiple Choice

Use the information below to answer the following questions.
Fact 31.3.1
Before 1995, trade between Canada and Mexico was subject to tariffs. In 1995, Mexico joined NAFTA and all Canadian and Mexican tariffs have gradually been removed.
-Refer to Fact 31.3.1. When Canadian tariffs are removed from a good, Canadian consumers of the good ________ and Canadian producers of the good ________.

• A)gain; lose
• B)gain; gain
• C)lose; gain
• D)lose; lose
• E)and the Canadian government gain; lose

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Definitions:

Fixed Manufacturing Overhead

Regular, unchanged costs incurred during the manufacturing process, regardless of the level of output.

Variable Costing

A costing method that only includes variable production costs in product costs, excluding fixed manufacturing overhead.

Net Operating Income

The profit generated from a company's day-to-day operations, excluding investment and financing transactions.

Operations

Refers to the day-to-day activities necessary for a business to function, including production, inventory management, and logistics.