Exam 7: Global Markets in Action

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,Canada ________ helicopters per year.

Choose the statement that is incorrect.

________ specifies the maximum quantity of a good that may be imported in a given period of time.

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.If Canada imposes an import quota on Australian beef,the price that Canadian consumers pay for beef will ________ and the quantity of beef produced in Canada will ________.

Canada exports athletic coaching services and imports computer tech support.The price of computer tech support in Canada is ________ with international trade than without international trade.As a result of trade in computer tech support,the Canadian producer surplus from computer tech support ________.

A tariff ________ consumer surplus and an import quota ________ consumer surplus.

Choose the statement that is incorrect.

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,Canada ________ million shirts per year.

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,Canadian firms buy ________ helicopters per year.

When considering rent seeking,which of the following is TRUE?

A market is open to international trade.At the world price,the quantity demanded is 150 units and the quantity supplied is 200 units.This country will

A tariff on watches which are imported by Atlantis ________ the price of watches in Atlantis and ________.

Tariffs and import quotas both result in

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.Canadian widget producers convince the government to protect the domestic industry from cheap imports.If the Canadian government sets an import quota of 8 million widgets,the resulting price of a widget in Canada will be ________,and domestic production will be ________.

Refer to the figure below to answer the following question. Figure 7.2.4 -Refer to Figure 7.2.4.The graph shows the demand for shoes in Brazil,D_B,the supply of shoes produced in Brazil,S_B,and the market equilibrium in Brazil when it does not trade internationally.If the world price of a pair of shoes is $20 and Brazil opens up and trades internationally,producer surplus in Brazil ________ and consumer surplus in Brazil ________.

Economists usually agree with which of the following arguments that favour protectionism?

Dumping occurs when a foreign firm

Choose the statement that is incorrect.If Canada imposes a tariff of $1 per imported shirt,the tariff

Use the information below to answer the following questions. Fact 7.3.1 Before 1995,trade between Canada and Mexico was subject to tariffs.In 1995,Mexico joined NAFTA and all Canadian and Mexican tariffs have gradually been removed. -Refer to Fact 7.3.1.With the removal of the tariffs,the quantity of Canadian imports from Mexico ________,and the quantity of Canadian exports to Mexico ________.

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