Exam 7: Global Markets in Action

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 7.2.1 -In Figure 7.2.1,with international trade Canadians buy ________ million shirts per year.

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

Prior to international trade,if the price of good X is lower in country A than in country B,

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.Canada imposes a tariff on imported shirts of $4 per shirt. Figure 7.3.1 -Refer to Figure 7.3.1,Canadian consumers' ________ 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

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 7.2.2 -In Figure 7.2.2,with international trade Canadian firms buy ________ helicopters per year.

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

Of the groups listed below,which is most likely to lobby for protection?

Tariffs

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

The gains from free trade are enjoyed by a ________ number of people and the costs of free trade are imposed on a ________ number of people.

An import quota is

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

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

The winners from a tariff on imports are

The introduction of a tariff ________ consumer surplus,________ producer surplus,and ________ total surplus.

Canada imports cars from Japan.If Canada imposes a tariff on cars imported from Japan,Canadian

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,then Glazeland will produce ________ doughnuts and will ________ doughnuts.

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

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