Question 1
Suppose the Canadian government imposes trade restrictions (tariffs or quotas) on the import of steel. Which of the following groups are likely to be in favour of this policy?
◦ foreign steel producers
◦ Canadian consumers
◦ Canadian steelworkers' union
◦ foreign steel consumers
◦ Canadian automotive union
Question 2
The table below shows the prices in Canada of one kilogram of cheddar cheese produced in three different countries. Assume that all cheddar cheese is identical.
| Producing Country | Canadian Price in $ | Canadian Price in $ |
| | Free Trade | 40% Import Tariff |
| Canada | 10.00 | ________ |
| United Kingdom | 9.00 | ________ |
| United States | 8.00 | ________ |
TABLE 20-1
Refer to Table 20-1. If Canada has a 40% tariff in place on the import of cheddar cheese, the price per kilogram of cheese from Canada, United Kingdom and United States respectively, is
◦ $10, $10 and $10.
◦ $10, $9.00 and $8.00.
◦ $10, $12.60 and $11.20.
◦ $14, $9.00 and $8.00.
◦ $14, $12.60 and $11.20.
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