Exam 31: Macro Only: International Trade Policy

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.

Goods and services that we buy from other countries are our

Tariffs

When an import quota is imposed, the gap between the domestic price and the price received in the exporting country is captured by

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

Which of the following is an explanation for the existence of trade restrictions?

Table 31.1.2 -Refer to Table 31.1.2. The table shows a country's demand and supply schedules. Suppose the world price is $4 a unit. The country

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

Use the information below to answer the following questions. Fact 31.3.2 With free trade between Australia and Canada, Australia would export beef to Canada. But Canada imposes an import quota on Australian beef. -Refer to Fact 31.3.2. Canadian gains from trade will ________ and Australian gains from trade will ________.

A Canadian tariff imposed on items that can be produced more cheaply abroad

An import quota directly restricts ________ and is designed to protect domestic ________.

Choose the correct statement.

Which of the following are valid reasons advanced by almost all economists? Protection

Which of the following statements about Canada's international trade in 2013 is correct?

If Canada imposes a tariff of $1 per imported shirt, the tariff

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

The fundamental force that drives international trade is

Lowering the tariff on good X

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.

Which of the following statements is true?