For Most Products,Canada Is a Small Economy with No Market

question 115

Multiple Choice

For most products,Canada is a small economy with no market power in the global market.If Canada imposed a tariff on imported goods from a low-wage foreign country,this would

• A)reduce the price of the imported good in Canada.
• B)improve Canada's terms of trade.
• C)increase the Canadian price of the imported good.
• D)equalize the costs of production between the two countries.
• E)increase wages in the low-wage foreign country.

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Definitions:

Statute Prohibits

A regulation enacted by a legislative body that forbids certain actions or conduct.

Expressly Prohibits

Clearly and specifically forbids an action or condition, typically in a legal context or regulation.

Delegation of Duties

The act of assigning specific tasks or responsibilities, originally held by one individual or group, to another.

Delegator

One who delegates his or her duties under a contract to another, called the delegatee.