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Suppose a $1 Per-Litre Tariff on All Wine Imported into Canada

Question 42

Multiple Choice

Suppose a $1 per-litre tariff on all wine imported into Canada was introduced.The effect of this tariff would be to


A) equally protect the production of all Canadian wines.
B) protect the production of expensive wines more than cheaper wines.
C) protect the production of cheaper wines more than expensive wines.
D) provide no protection at all to the Canadian wine industry.
E) create an incentive to produce better quality wines.

Correct Answer:

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