Exam 31: Macro Only: International Trade Policy

Table 31.3.1 Canada's Market for Widgets -Table 31.3.1 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?

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

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 31.3.1 -Refer to Figure 31.3.1. With the tariff, Canada imports ________ million shirts per year.

The idea of dynamic comparative advantage is the basis for which of the following arguments for protection from foreign competition?

If Canada imposes a tariff on imported cars,

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

When a tariff is imposed, the gap between the domestic price and the price received in the exporting country is captured by

Suppose that the country of Pacifica sold its cars in Atlantica for less than it costs to produce the cars. Pacifica could be accused of

Table 31.3.1 Canada's Market for Widgets -Table 31.3.1 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 ________.

The goods and services we sell to people in other countries are our

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. The quantity of Canadian exports to Mexico has ________ and the Canadian government's tariff revenue from trade with Mexico has ________.

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

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

Offshore outsourcing occurs when a firm in Canada

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.

Canada has a comparative advantage in producing hardwood if the Canadian price of hardwood before international trade is ________ the world price.

Import quotas

Two reasons that explain why international trade in 2014 remained restricted is that restricted international trade

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 ________ million shirts per year are produced in Canada.

Suppose the country of Mooland imposes tariffs on imported beef from the country of Aqualand. As a result of the tariffs, the