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Fact 7.3.2
With free trade between Australia and Canada,Australia would export beef to Canada.But Canada imposes an import quota on Australian beef.
-Refer to Fact 7.3.2.Canadian gains from trade will ________ and Australian gains from trade will ________.
A)increase;decrease
B)decrease;decrease
C)decrease;increase
D)increase;increase
E)not change;not change

Question

Quizplus · Accepted Answer

Imposing an import quota on Australian beef by Canada will decrease Canadian gains from trade because it limits the amount of beef that can be imported, potentially at a lower price than domestic beef. Australian gains from trade will also decrease because the quota restricts their beef exports to Canada, limiting their market access and potential profits.

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