Exam 7: Global Markets in Action

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

Choose the statement that is incorrect.

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 ________.

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

Refer to the figure below to answer the following questions. Figure 7.2.1 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. -In Figure 7.2.1, international trade ________ consumer surplus in Canada by ________.

If a government imposes a quota on imports of a popular doll, the price of the doll in the importing country ________ and the quantity purchased in the importing country ________.

Tariffs and import quotas differ in that

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

One reason that international trade is restricted is that

In a market that moves from a situation of no trade to a situation where a good is exported, in the exporting country the price of the good ________, and producer surplus ________.

Which of the following statements concerning tariffs is NOT true?

An import quota is a

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

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.

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.

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

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

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

Refer to the figure below to answer the following questions. Figure 7.2.2 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. -In Figure 7.2.2, with international trade, Canadian firms buy ________ helicopters per year.