Exam 7: Global Markets in Action

Refer to the figure below to answer the following questions. Figure 7.3.1 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.Canada imposes a tariff on imported shirts of $4 per shirt. -Refer to Figure 7.3.1.The tariff ________ Canada's imports of shirts by ________ million shirts per year.

The effects of offshore outsourcing from opening up call centres in India are similar to the effects from

Refer to the table below to answer the following questions. Table 7.1.1 Glazeland's Doughnut Market -Table 7.1.1 shows Glazeland's doughnut market before international trade.Glazeland opens up to international trade.If the world price is $0.60 a doughnut then Glazeland will produce ________ doughnuts and will ________ doughnuts.

Which of the following statements concerning tariffs is NOT true?

Usually the removal of trade barriers affecting a particular good benefits ________ people domestically,each of whom gains a ________.

Canada's producer surplus ________ when Canada imports a good,and Canada's producer surplus ________ when Canada exports a good.

Which of the following are valid reasons advanced by almost all economists? Protection

If Canada imposes a tariff on imported steel,the tariff

Choose the correct statement.

In one year,Brazil exported more than 1.8 billion kilograms of coffee to the rest of the world.We can conclude that

A tariff is imposed on a good.This ________ the quantity supplied and ________ the quantity demanded in the importing country.

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

Consider a country that sells some of its goods as exports.Who does NOT benefit?

Refer to the table below to answer the following questions. Table 7.3.1 Canada's Market for Widgets -Table 7.3.1 shows the Canadian supply of and demand for widgets.Widgets are available on the world market for $7.If the Canadian government imposes a tariff of $1,the domestic selling price will be ________ and quantity bought in Canada will be ________.

Canada has a comparative advantage in producing hardwood if the Canadian price of hardwood before international trade is

Goods and services that we buy from other countries are our

Refer to the table below to answer the following questions. Table 7.3.1 Canada's Market for Widgets -Table 7.3.1 shows the Canadian supply of and demand for widgets.Widgets are available on the world market for $7.If the Canadian government imposes a tariff of $1,how many widgets will Canada import?

Which of the following statements is true?

Refer to the figure below to answer the following questions. Figure 7.2.1 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 7.2.1,if the economy moves from no trade to international trade,producer surplus in Canada ________ by ________.

A tariff ________ a deadweight loss and an import quota ________ a deadweight loss.