Exam 7: Global Markets in Action

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. Canadian farmers produce ________ eggs.Canada ________ eggs.

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

Refer to the figure below to answer the following questions. Figure 7.3.1 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. Canada imposes a tariff on imported shirts of $4 per shirt. -Refer to Figure 7.3.1.The tariff ________ Canada's imports of shirts by ________ million shirts per year.

Tariffs and import quotas both result in

A tariff is imposed on a good.This ________ producer surplus and ________ total surplus in importing country.

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

Table 7.1.1 Glazeland's Doughnut Market -Table 7.1.1 shows Glazeland's doughnut market before international trade.Glazeland opens up to international trade.If the world price is $0.60 a doughnut then Glazeland will produce ________ doughnuts and will ________ doughnuts.

If a quota is set at the same quantity of imports that results from a tariff,

Import quotas ________ the price of imported goods and ________ the quantity consumed in the country imposing the quota.

The infant industry argument is based on the idea of

________ specifies the maximum quantity of a good that may be imported in a given period of time.

Canada has a comparative advantage in producing airplanes if

If Canada imposes a tariff on imported cars,

Economists usually agree with which of the following arguments that favour protectionism?

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

Prior to international trade, if the price of good X is lower in country A than in country B,

Import quotas

A tariff is imposed on imports.Surplus will be redistributed from

Refer to the figure below to answer the following questions. Figure 7.3.1 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. Canada imposes a tariff on imported shirts of $4 per shirt. -Refer to Figure 7.3.1.The tariff ________ the domestic production of shirts in Canada by ________ per year.

Table 7.3.1 Canada's Market for Widgets -Table 7.3.1 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, the domestic selling price will be ________ and quantity bought will be ________.