To Encourage Using Locally-Produced Oil from the Gulf of Mexico,the

question 40

Multiple Choice

To encourage using locally-produced oil from the Gulf of Mexico,the United States government applies tax to Canadian-produced oil as it crosses the border.This tax is referred to a:

• A)GATT tax.
• B)quota.
• C)tariff.
• D)foreign excise tax.

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Definitions:

Complements

Goods or services that are often used together, where an increase in demand for one leads to an increase in demand for the other.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, with high elasticity indicating a strong response and low elasticity indicating a weak response.

Free Range Eggs

Eggs that come from chickens that have been given the freedom to roam outdoors, rather than being confined in small cages.

Cartons

Containers usually made of paperboard or cardboard used for storing and transporting goods.