Question 1

Choose the statement that is incorrect.

Accepted Answer

A) Protection saves jobs at a low cost. 
B) Imports create jobs for retailers that sell imported goods and for firms that service those goods. 
C) Free trade destroys some jobs. 
D) Free trade brings about a global rationalization of labour. 
E) Imports create income in the rest of the world, some of which is spent on Canadian- made goods and services. 
A) Protection saves jobs at a low cost. 
B) Imports create jobs for retailers that sell imported goods and for firms that service those goods. 
C) Free trade destroys some jobs. 
D) Free trade brings about a global rationalization of labour. 
E) Imports create income in the rest of the world, some of which is spent on Canadian- made goods and services.

Question 2

Refer to the figure below to answer the following questions.
   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.
Figure 15.1.1
-In Figure 15.1.1, with international trade _______ million shirts per year are produced in Canada.

Accepted Answer

A) 56 
B) 32 
C) 16 
D) 20 
E) 48 
A) 56 
B) 32 
C) 16 
D) 20 
E) 48

Question 3

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

Accepted Answer

A) a few; lot 
B) many; little 
C) a few; little 
D) many; lot 
E) We can't determine the relative benefits from the imposition of trade barriers. 
A) a few; lot 
B) many; little 
C) a few; little 
D) many; lot 
E) We can't determine the relative benefits from the imposition of trade barriers.

Question 4

Refer to the figure below to answer the following questions.
   The figure shows the market for shirts in Canada, where D is the domestic demand curve and S is the domestic supply curve.world price is $20 per shirt.Canada imposes a tariff on imported shirts of $4 per shirt.
Figure 15.3.1
-Refer to Figure 15.3.1.The tariff _______ the domestic production of shirts in Canada by _______ per year.

Accepted Answer

A) increases; 24 million 
B) increases; 8 million 
C) decreases; 8 million 
D) increases; 4 million 
E) decreases; 16 million 
A) increases; 24 million 
B) increases; 8 million 
C) decreases; 8 million 
D) increases; 4 million 
E) decreases; 16 million

Question 5

If a country imposes a tariff on an imported good, the tariff _______ the price in the importing country and _______ the quantity of imports.

Accepted Answer

A) raises; does not change 
B) raises; increases 
C) raises; decreases 
D) lowers; increases 
E) lowers; does not change 
A) raises; does not change 
B) raises; increases 
C) raises; decreases 
D) lowers; increases 
E) lowers; does not change

Question 6

A country

Accepted Answer

A) imports goods produced in countries with lower wage rates. 
B) exports those goods in which it has a comparative advantage. 
C) exports goods produced by domestic industries with low wages relative to its trading partners. 
D) imports those goods in which it has a comparative advantage. 
E) B and D are correct. 
A) imports goods produced in countries with lower wage rates. 
B) exports those goods in which it has a comparative advantage. 
C) exports goods produced by domestic industries with low wages relative to its trading partners. 
D) imports those goods in which it has a comparative advantage. 
E) B and D are correct.

Question 7

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

Accepted Answer

A) decreases; increases 
B) decreases; decreases 
C) increases; increases 
D) increases; decreases 
E) decreases; does not change 
A) decreases; increases 
B) decreases; decreases 
C) increases; increases 
D) increases; decreases 
E) decreases; does not change

Question 8

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.

Accepted Answer

A) II and III 
B) I and II 
C) I and III 
D) I, II, and III 
E) None of the above 
A) II and III 
B) I and II 
C) I and III 
D) I, II, and III 
E) None of the above

Question 9

Refer to the figure below to answer the following questions.
   The figure shows the market for helicopters in Canada, where D is the domestic demand curve and S is the domestic supply curve.Canada trades helicopters with the rest of the world at a price of $36 million per helicopter.
Figure 15.1.2
-In Figure 15.1.2, with international trade _______ helicopters per year are produced in Canada.

Accepted Answer

A) 360 
B) 720 
C) 240 
D) 480 
E) 600 
A) 360 
B) 720 
C) 240 
D) 480 
E) 600

Question 10

A tariff is a tax that is imposed by the _______ country when an _______ good crosses its international boundary.

Accepted Answer

A) exporting; exported 
B) importing; imported 
C) importing; exported 
D) exporting; imported 
E) importing or exporting; imported or exported 
A) exporting; exported 
B) importing; imported 
C) importing; exported 
D) exporting; imported 
E) importing or exporting; imported or exported

Question 11

The infant- industry argument is based on the idea of

Accepted Answer

A) learning- by- doing. 
B) tariff minimization. 
C) global comparative advantage. 
D) tariff maximization. 
E) global absolute advantage. 
A) learning- by- doing. 
B) tariff minimization. 
C) global comparative advantage. 
D) tariff maximization. 
E) global absolute advantage.

Question 12

In a market that moves from a situation of no trade to a situation where a good is imported, the price of the good _______ and the quantity produced by the domestic industry _______.

Accepted Answer

A) does not change; increases 
B) falls; decreases 
C) rises; increases 
D) rises; does not change 
E) does not change; decreases 
A) does not change; increases 
B) falls; decreases 
C) rises; increases 
D) rises; does not change 
E) does not change; decreases

Question 13

Refer to the figure below to answer the following questions.
   The figure shows the market for helicopters in Canada, where D is the domestic demand curve and S is the domestic supply curve.Canada trades helicopters with the rest of the world at a price of $36 million per helicopter.
Figure 15.1.2
-In Figure 15.1.2, with international trade Canadian firms buy _______ helicopters per year.

Accepted Answer

A) 720 
B) 360 
C) 480 
D) 600 
E) 240 
A) 720 
B) 360 
C) 480 
D) 600 
E) 240

Question 14

Use the information below to answer the following questions.
Fact 15.3.1
Before 1995, trade between Canada and Mexico was subject to tariffs.In 1995, Mexico joined NAFTA and all Canadian and M tariffs have gradually been removed.
-Refer to Fact 15.3.1.When Canadian tariffs are removed from a good, Canadian consumers of the good _______ and Canadian producers of the good _______.

Accepted Answer

A) gain; lose. 
B) lose; gain 
C) gain; gain 
D) lose; lose 
E) gain; lose 
A) gain; lose. 
B) lose; gain 
C) gain; gain 
D) lose; lose 
E) gain; lose

Question 15

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

Accepted Answer

A) tariffs; import quotas 
B) import quotas; tax collection 
C) tariffs; tax collection 
D) tax collection; tariffs 
E) import quotas; tariffs 
A) tariffs; import quotas 
B) import quotas; tax collection 
C) tariffs; tax collection 
D) tax collection; tariffs 
E) import quotas; tariffs

Question 16

Which of the following statements about Canada's international trade in 2016 is correct?

Accepted Answer

A) The value of Canada's imports exceeded the value of Canada's exports. 
B) Canada exported only goods. 
C) Canada was the world's second largest trader. 
D) Canada imported only goods. 
E) The value of Canada's exports was about 45 percent of the value of total expenditure in Canada. 
A) The value of Canada's imports exceeded the value of Canada's exports. 
B) Canada exported only goods. 
C) Canada was the world's second largest trader. 
D) Canada imported only goods. 
E) The value of Canada's exports was about 45 percent of the value of total expenditure in Canada.

Question 17

Of the following, in which decade were Canada's tariffs at their lowest level?

Accepted Answer

A) 1970s 
B) 1990s 
C) 1890s 
D) 1930s 
E) 1950s 
A) 1970s 
B) 1990s 
C) 1890s 
D) 1930s 
E) 1950s

Question 18

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

Accepted Answer

A) decreases; increases 
B) increases; does not change 
C) increases; increases 
D) decreases; decreases 
E) increases; decreases 
A) decreases; increases 
B) increases; does not change 
C) increases; increases 
D) decreases; decreases 
E) increases; decreases

Question 19

Refer to the figure below to answer the following questions.
   The figure shows the market for shirts in Canada, where D is the domestic demand curve and S is the domestic supply curve.world price is $20 per shirt.Canada imposes a tariff on imported shirts of $4 per shirt.
Figure 15.3.1
-Refer to Figure 15.3.1.With the tariff, Canadians buy _______ million shirts per year.

Accepted Answer

A) 16 
B) 48 
C) 24 
D) 32 
E) 40 
A) 16 
B) 48 
C) 24 
D) 32 
E) 40

Question 20

Refer to the figure below to answer the following questions.
   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.
Figure 15.1.1
-In Figure 15.1.1, with international trade Canadians buy _______ million shirts per year.

Accepted Answer

A) 32 
B) 48 
C) 56 
D) 16 
E) 24 
A) 32 
B) 48 
C) 56 
D) 16 
E) 24

Choose the statement that is incorrect.

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

If a country imposes a tariff on an imported good, the tariff _ the price in the importing country and _ the quantity of imports.

A country

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

A tariff is a tax that is imposed by the _ country when an _ good crosses its international boundary.

The infant- industry argument is based on the idea of

In a market that moves from a situation of no trade to a situation where a good is imported, the price of the good _ and the quantity produced by the domestic industry _.

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

Which of the following statements about Canada's international trade in 2016 is correct?

Of the following, in which decade were Canada's tariffs at their lowest level?

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

What Is Economics

The Economic Problem

Demand and Supply

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

Filters

Exam 15: International Trade Policy

Choose the statement that is incorrect.

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

If a country imposes a tariff on an imported good, the tariff _______ the price in the importing country and _______ the quantity of imports.

A country

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

A tariff is a tax that is imposed by the _______ country when an _______ good crosses its international boundary.

The infant- industry argument is based on the idea of

In a market that moves from a situation of no trade to a situation where a good is imported, the price of the good _______ and the quantity produced by the domestic industry _______.

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

Which of the following statements about Canada's international trade in 2016 is correct?

Of the following, in which decade were Canada's tariffs at their lowest level?

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

What Is Economics

The Economic Problem

Demand and Supply

Measuring Gdp and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, the Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

The Business Cycle, Inflation, and Deflation

Fiscal Policy

Monetary Policy

Filters

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

If a country imposes a tariff on an imported good, the tariff _ the price in the importing country and _ the quantity of imports.

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

A tariff is a tax that is imposed by the _ country when an _ good crosses its international boundary.

In a market that moves from a situation of no trade to a situation where a good is imported, the price of the good _ and the quantity produced by the domestic industry _.

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

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