Use the Information Below to Answer the Following Questions

question 133

Multiple Choice

Use the information below to answer the following questions.
Fact 7.3.1
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 7.3.1.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:

Market

The arena in which buyers and sellers come together to trade goods, services, or financial instruments, establishing prices through supply and demand.

Usury Law

Legislation that sets the maximum interest rate that can be charged on loans, to prevent lenders from imposing excessively high rates.

Market Rate

The prevailing interest rate available in the market for loans or the rate at which other financial instruments are priced, often influenced by the supply and demand for money.

Shortage

A situation where the demand for a product or service exceeds the available supply.