Exam 7: Global Markets in Action

Increasing a tariff ________ the domestic quantity consumed of the good and ________ the domestic production of the good.

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

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,consumer surplus in Canada ________ by ________.

Canada produces both lumber and wine.Canada exports lumber and imports wine.The rest of the world imports Canadian lumber and exports wine to Canada.If Canada did not trade with the rest of the world,then the equilibrium price of lumber would be ________ in Canada than the rest of the world,and the equilibrium price of wine would be ________ in Canada than the rest of the world.

Refer to the figure below to answer the following questions. Figure 7.1.2 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 7.1.2,with international trade,________ helicopters per year are produced in Canada.

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. Canadian farmers produce ________ eggs.Canada ________ eggs.

The fundamental force that drives international trade is

Which of the following is a Canadian service export?

When Canada exports a good,the ________ in Canada's consumer surplus is ________ the increase in Canada's producer surplus.

If a quota is set at the same quantity of imports that results from a tariff,

A country opens up to trade and becomes an importer of some good.Consumer surplus on that good ________,and producer surplus on that good ________.

A country moves from a situation of no trade to a situation where a good is exported.In the exporting country the price of the good ________,and producer surplus ________.

Offshore outsourcing occurs when a firm in Canada

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 deadweight loss from the tariff is

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

A key difference between tariffs and import quotas is that

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.With the tariff,Canada imports ________ million shirts per year.

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.With the tariff,Canadians buy ________ million shirts per year.

Compared to the situation before international trade,after Canada imports a good,production in Canada ________ and consumption in Canada ________.

In the exporting industries of poorer countries,free trade ________ the demand for labour in these industries and ________ the wages paid in these industries.