Exam 7: Global Markets in Action

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 ________ total surplus in Canada by ________.

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

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

Table 7.2.2 -Table 7.2.2 shows a country's demand and supply schedules.Based on Table 7.2.2, at what world price would the country export?

Choose the statement that is incorrect.

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 Canada exports a good, the amount of the ________ in Canada's consumer surplus is ________ the amount of the increase in Canada's producer surplus.

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, how many widgets will Canada import?

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.With the tariff, Canadians buy ________ million shirts per year.

A country opens up to trade.In an export industry, surplus has been redistributed from

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

When a firms "dumps" some of its output in another country, it

When a Canadian firm implements offshore outsourcing, consumers in Canada ________, and workers in Canada in the industry that is being outsourced ________.

A difference between a quota and a tariff is that

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, international trade ________ total surplus in Canada by ________.

Use the information below to answer the following questions. Fact 7.3.2 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 7.3.2.If Canada imposes an import quota on Australian beef, the price that Canadian consumers pay for beef will ________ and the quantity of beef produced in Canada will ________.

The argument that protection

A tariff on watches which are imported by Atlantis ________ the price of watches in Atlantis and ________.

The proposition that protection is necessary to allow an infant industry to grow into a mature industry so that it can compete in world markets is the

A tariff ________ the domestic price of the good and an import quota ________ the domestic price of the good.