When Canada Imports Products or Services from the Rest of the World

question 41

Multiple Choice

When Canada imports products or services from the rest of the world,

• A) our trading partners become poorer.
• B) prices rise in import-competing industries.
• C) wages rise in import-competing industries.
• D) prices fall for Canadian consumers.
• E) wages fall in the rest of the world.

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Definitions:

Raw Materials

Raw materials are basic and unprocessed inputs used in the manufacturing of goods.

Manufacturing Overhead

Indirect manufacturing costs such as the expenses for factory maintenance and equipment depreciation.

Raw Materials Used

The total value of all raw materials consumed in the production process over a specified period.

Factory Depreciation

The systematic allocation of the cost of physical assets used in the manufacturing process over their useful lives.