Exam 7: Global Markets in Action

Refer to the figure below to answer the following question. Figure 7.2.3 -Refer to Figure 7.2.3.The graph shows the market for shoes in Canada.The world price of a pair of shoes is $20.Moving from a situation of no international trade to a situation of free international trade,Canadian consumer surplus ________ and Canadian producer surplus ________.

A country opens up to trade.In an export industry,surplus is redistributed from

Suppose that the world price of eggs is $1 a dozen,Canada does not trade internationally,and the equilibrium price of eggs in Canada is $3 a dozen.Then Canada begins to trade internationally. The price of eggs in Canada ________.Canadian consumers buy ________ eggs.

In developing countries,there is more reliance on ________ as opposed to ________ for government revenue.

International trade benefits the

A tax that is imposed by the importing country when an imported good crosses its international boundary is called

A tariff imposed by Canada on Japanese cars ________ the price of cars in Canada and ________ the quantity of Japanese cars imported into Canada.

If a government imposes a quota on imports of a popular doll,the price of the doll in the importing country ________ and the quantity purchased in the importing country ________.

A country opens up to trade and becomes an exporter of a good.Consumer surplus ________ and producer surplus ________.

Refer to the figure below to answer the following questions. Figure 7.2.2 The figure shows the market for helicopters in Canada,where D is the domestic demand curve and S is the domestic supply curve.The world price is $36 million per helicopter. -In Figure 7.2.2,if the economy moves from no trade to international trade,consumer surplus in Canada ________ by ________.

Use the information below to answer the following questions. 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 ________.

Which of the following are reasons economists consider valid for trade protection? I.Protection penalizes countries that have weak environmental standards. II.Protection limits dumping of low-wage jobs into the domestic economy. III.Protection prevents low-wage jobs in foreign countries from lowering wages in Canada.

A country moves from a situation of no trade to a situation where it imports a good.Which of the following does not occur in the market for this good in the importing country?

A country

Canada has a comparative advantage in producing airplanes if

When a Canadian firm implements offshore outsourcing,consumers in Canada ________,and workers in Canada in the industry that is being outsourced ________.

Refer to the figure below to answer the following questions. Figure 7.1.1 The figure shows the market for shirts in Canada,where D is the domestic demand curve and S is the domestic supply curve.The world price is $20 per shirt. -In Figure 7.1.1,with international trade,________ million shirts per year are produced in Canada.

The infant industry argument is based on the idea of

An import quota is

The goods and services we sell to people in other countries are our