Question 1

Two reasons that explain why international trade in 2010 remains restricted is that restricted international trade ________.

Accepted Answer

A) benefits domestic producers of import-competing goods and services and generates tariff revenue in developing countries 
B) prevents developed countries from exploiting third world countries and saves jobs in those countries 
C) brings diversity and stability to the whole economy and saves jobs in developing countries 
D) saves jobs and penalizes developing countries that have lax environmental standards 
E) brings diversity to the whole economy and penalizes countries that have lax environmental standards 
A) benefits domestic producers of import-competing goods and services and generates tariff revenue in developing countries 
B) prevents developed countries from exploiting third world countries and saves jobs in those countries 
C) brings diversity and stability to the whole economy and saves jobs in developing countries 
D) saves jobs and penalizes developing countries that have lax environmental standards 
E) brings diversity to the whole economy and penalizes countries that have lax environmental standards

Question 2

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

Accepted Answer

A) lowers;imports of watches increase 
B) raises;watch production in Atlantis increases 
C) raises;watch production in Atlantis decreases 
D) lowers;watch production in Atlantis increases 
E) lowers;watch production in Atlantis decreases 
A) lowers;imports of watches increase 
B) raises;watch production in Atlantis increases 
C) raises;watch production in Atlantis decreases 
D) lowers;watch production in Atlantis increases 
E) lowers;watch production in Atlantis decreases

Question 3

Table 31.1.1
Glazeland's Doughnut Market
   
Refer to the table below to answer the following questions.
-Table 31.1.1 shows Glazeland's doughnut market before international trade.Glazeland opens up to international trade.If the world price is $0.40,then Glazeland will produce ________ doughnuts and will ________ doughnuts.

Accepted Answer

A) 3 million;import 3 million 
B) 3 million;export 3 million 
C) 4 million;import 1 million 
D) 4 million;export 1 million 
E) 6 million;export 3 million 
A) 3 million;import 3 million 
B) 3 million;export 3 million 
C) 4 million;import 1 million 
D) 4 million;export 1 million 
E) 6 million;export 3 million

Question 4

A country

Accepted Answer

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

Question 5

Suppose that the world price of oats is 30 cents a kilogram.Canada does not trade internationally,and the equilibrium price of oats in Canada is 40 cents a kilogram.Canada then begins to trade internationally.The price of oats in Canada ________.Canadian consumers buy ________ oats.Canadian firms produce ________ oats.Canada ________ oats.

Accepted Answer

A) rises;less;more;exports 
B) falls;less;more;imports 
C) falls;more;less;imports 
D) rises;more;less;exports 
E) falls;more;less;exports 
A) rises;less;more;exports 
B) falls;less;more;imports 
C) falls;more;less;imports 
D) rises;more;less;exports 
E) falls;more;less;exports

Question 6

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

Accepted Answer

A) domestic consumers 
B) domestic producers 
C) workers in the industry 
D) foreign consumers 
E) everyone benefits 
A) domestic consumers 
B) domestic producers 
C) workers in the industry 
D) foreign consumers 
E) everyone benefits

Question 7

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 31.1.2
-In Figure 31.1.2,Canada ________ helicopters per year.

Accepted Answer

A) exports 480 
B) exports 720 
C) imports 480 
D) imports 240 
E) exports 240 
A) exports 480 
B) exports 720 
C) imports 480 
D) imports 240 
E) exports 240

Question 8

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

Question 9

When a firm implements offshore outsourcing,consumers in Canada ________,workers in Canada in the industry that is being outsourced ________ and workers in the foreign country in the industry that is being outsourced ________.

Accepted Answer

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

Question 10

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.Canada has a comparative advantage in producing ________.The rest of the world has a comparative advantage in producing ________.

Accepted Answer

A) lumber;wine 
B) wine;lumber 
C) wine;wine 
D) lumber;lumber 
E) both lumber and wine;neither lumber nor wine 
A) lumber;wine 
B) wine;lumber 
C) wine;wine 
D) lumber;lumber 
E) both lumber and wine;neither lumber nor wine

Question 11

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

Accepted Answer

A) Brazil's coffee producers lose from this trade. 
B) coffee consumers in the rest of the world lose from this trade. 
C) Brazil's coffee consumers lose from this trade. 
D) coffee producers in the rest of the world gain from this trade. 
E) Brazil's government loses from this trade. 
A) Brazil's coffee producers lose from this trade. 
B) coffee consumers in the rest of the world lose from this trade. 
C) Brazil's coffee consumers lose from this trade. 
D) coffee producers in the rest of the world gain from this trade. 
E) Brazil's government loses from this trade.

Question 12

Table 31.2.1
Canada's Market for Widgets
   
Refer to the table below to answer the following questions.
-Table 31.2.1 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?

Accepted Answer

A) 32 million 
B) 24 million 
C) 16 million 
D) 28 million 
E) 40 million 
A) 32 million 
B) 24 million 
C) 16 million 
D) 28 million 
E) 40 million

Question 13

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

Accepted Answer

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

Question 14

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

Accepted Answer

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

Question 15

Which of the following is a Canadian service export?

Accepted Answer

A) A Canadian buys dinner while travelling in Switzerland. 
B) A Swiss buys dinner while travelling in Canada. 
C) A Canadian buys a clock made in Switzerland. 
D) A Swiss buys a computer made in Canada. 
E) A Canadian buys a Canadian computer in Switzerland. 
A) A Canadian buys dinner while travelling in Switzerland. 
B) A Swiss buys dinner while travelling in Canada. 
C) A Canadian buys a clock made in Switzerland. 
D) A Swiss buys a computer made in Canada. 
E) A Canadian buys a Canadian computer in Switzerland.

Question 16

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

Accepted Answer

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

Question 17

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

Accepted Answer

A) free trade. 
B) tariffs. 
C) import quota. 
D) voluntary export restraints. 
E) export subsidies. 
A) free trade. 
B) tariffs. 
C) import quota. 
D) voluntary export restraints. 
E) export subsidies.

Question 18

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.

Accepted Answer

A) lower;higher 
B) higher;lower 
C) higher;higher 
D) lower;lower 
E) the same or lower;the same or higher 
A) lower;higher 
B) higher;lower 
C) higher;higher 
D) lower;lower 
E) the same or lower;the same or higher

Question 19

When a firms "dumps" some of its output in another country,it

Accepted Answer

A) creates an environmental hazard in the receiving country. 
B) sells its output abroad at a price lower than it costs to produce the output. 
C) increases the total level of employment in the importing country. 
D) is specializing according to comparative advantage. 
E) creates for itself an absolute advantage. 
A) creates an environmental hazard in the receiving country. 
B) sells its output abroad at a price lower than it costs to produce the output. 
C) increases the total level of employment in the importing country. 
D) is specializing according to comparative advantage. 
E) creates for itself an absolute advantage.

Question 20

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.When Canada exports lumber to the rest of the world and the rest of the world exports wine to Canada ________.

Accepted Answer

A) lumber producers in the rest of the world lose and wine producers in the rest of the world gain 
B) Canada's lumber producers gain 
C) Canada's wine producers lose 
D) all of the above 
E) none of the above 
A) lumber producers in the rest of the world lose and wine producers in the rest of the world gain 
B) Canada's lumber producers gain 
C) Canada's wine producers lose 
D) all of the above 
E) none of the above

Exam 31:International Trade Policy

Two reasons that explain why international trade in 2010 remains restricted is that restricted international trade ________.

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

A country

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

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 ________.

When a firm implements offshore outsourcing,consumers in Canada ________,workers in Canada in the industry that is being outsourced ________ and workers in the foreign country in the industry that is being outsourced ________.

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.Canada has a comparative advantage in producing ________.The rest of the world has a comparative advantage in producing ________.

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

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

Which of the following is a Canadian service export?

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

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

When a firms "dumps" some of its output in another country,it

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.When Canada exports lumber to the rest of the world and the rest of the world exports wine to Canada ________.

What Is Economics?

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Organizing Production

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Externalities

Public Goods and Common Resources

Markets for Factors of Production

Economic Inequality

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 Keynesian Model

Canadian Inflation, Unemployment, and Business Cycle

Fiscal Policy

Monetary Policy

Filters

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

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 .

When a firm implements offshore outsourcing,consumers in Canada ,workers in Canada in the industry that is being outsourced and workers in the foreign country in the industry that is being outsourced .

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.Canada has a comparative advantage in producing .The rest of the world has a comparative advantage in producing .

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

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