High School

Canada is considering imposing a tax on imports of Chinese solar panels. This action would be best described as a:

A. Subsidy
B. Quota
C. Tariff
D. Voluntary export restraint

In general, which of the following statements is most likely to occur as a result of the proposed tax on imported solar panels?

A. Solar panel producers in Canada will face more competition.
B. Canadian workers in solar panel manufacturing will be laid off.
C. Consumers in Canada will face higher prices for solar panels.
D. Canadian consumers will benefit from cheaper solar panels.

Answer :

The most likely statement to occur as a result of the proposed tax on imported solar panels is that consumers in Canada will face higher prices for solar panels.

This is because the tax would make it more expensive for Canadian companies to import solar panels from China, which would decrease the supply of solar panels in Canada. As a result, Canadian consumers would have fewer options for purchasing solar panels and would likely see an increase in prices as a result of the limited supply.

Additionally, the tax may also lead to solar panel producers in Canada facing less competition, as Chinese manufacturers may not be able to compete with the higher prices due to the tax.

However, it is less likely that Canadian workers in solar panel manufacturing will be laid off, as the tax would be aimed at imported solar panels rather than Canadian-made ones. Overall, the proposed tax on imported solar panels would likely have a negative impact on consumers in Canada by raising prices for solar panels.

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