If a country announces that it will withdraw protection for a protected industry within a specied time period, this would be a possible solution to the problem of O A. strategic subsidies. O B. voluntary export restriction (VER). O C. industries stuck in infancy. O D. "buy Canadian." 0 E. antidurnping duties. The primary cost of having trade protection is G) A. higher foreign debt. 0 B. the loss ofjobs. O C. the loss of revenue from tariffs. O D. the loss in average living standards. 0 E. the loss of industries that cannot compete in the world. A common false argument for using tariffs to maximize national income and raise domestic living standards is to I' ..... " kJ O A. create a strategic trade advantage 0 B. alter the terms of trade O C. protect infant industries 0 D. exploit economies of scale 0 E. protect against low-wage foreign labour Suppose the Canadian government were to subsidize its exports of automobiles to a foreign country. If a domestic rm in that country suspects the existence of such a subsidy and registers a complaint, its government is required to make an investigation. If the investigation determines, rst, that the Canadian subsidy to the automobiles industry does exist and, second, that it is large enough to cause signicant injury to competing domestic rms, then that country would most likely impose O A. a customs union. O B. trade diversion. O C. a VER. O D. antidumping duties. O E. a countervailing duty. Refer to the accompanying diagram, which shows the demand and supply curves for refrigerators in Canada. Suppose that P is the world price. If Canada imposes a tariff causing the price S of refrigerators in Canada to rise from P to P , the Canadian government will collect tariff revenues equal to O A. the new price, P, , multiplied by the total quantity of refrigerators purchased in Canada, Q3. P2 Price of Refrigerators O B. the new price, P , multiplied by the total quantity of refrigerators P1 purchased in Canada, Q2. Po O C. the original price P , multiplied by the original quantity of refrigerators imported into Canada, Q Q1 D O D. (P, - P ) multiplied by the tariff-induced quantity of refrigerators Qo: QA Q3: Q1: imported into Canada, Q2Q3. Quantity of Refrigerators O E. (P, - P ) multiplied by the tariff-induced quantity of refrigerators