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. $$\begin{array} { | l | c | c | }
\hline \text { Producing Country } & \text { Canadian Price in } \$ & \text { C anadian Price in } \$ \
\hline & \text { Free Trade } & 40 \% \text { Import Tariff } \
\hline \text { Canada } & 10.00 & \
\hline \text { United Kingdom } & 9.00 & \
\hline \text { United States } & 8.00 & \
\hline
\end{array}$$ TABLE 34- 1
-A common argument for the use of tariffs when the objective is to maximize a country's national income would be to

Question

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. $$\begin{array} { | l | c | c | } 
\hline \text { Producing Country } & \text { Canadian Price in } \$ & \text { C anadian Price in } \$ \
\hline & \text { Free Trade } & 40 \% \text { Import Tariff } \
\hline \text { Canada } & 10.00 & \
\hline \text { United Kingdom } & 9.00 & \
\hline \text { United States } & 8.00 & \
\hline
\end{array}$$ TABLE 34- 1
-A common argument for the use of tariffs when the objective is to maximize a country's national income would be to

Quizplus · Accepted Answer

Imposing tariffs can improve a country's terms of trade by increasing the price of imports relative to exports, potentially benefiting national income.

The Table Below Shows the Prices in Canada of One