Exam 31: Macro Only: International Trade Policy

Table 31.1.1 Glazeland's Doughnut Market -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 ________.

If Canada imposes a tariff on imported steel, the tariff

A key difference between tariffs and import quotas is that

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, ________.

Canada has a comparative advantage in producing airplanes if

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.

When the Canadian government imposes a tariff,

A country

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

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 ________.

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

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. The price of eggs in Canada ________. Canadian consumers buy ________ eggs.

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 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 31.1.1 -In Figure 31.1.1, with international trade Canadians buy ________ million shirts per year.

Use the information below to answer the following questions. Fact 31.3.1 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 31.3.1. When Canadian tariffs are removed from a good, Canadian consumers of the good ________ and Canadian producers of the good ________.

One reason that international trade is restricted is that

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

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, with international trade ________ helicopters per year are produced in Canada.

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

Choose the statement that is incorrect.