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, with international trade, Canada ________ million shirts per year.

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.Canada has a comparative advantage in producing ________.The rest of the world has a comparative advantage in producing ________.

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

Consider a country that sells some of its goods as exports.Who does NOT benefit?

A country opens up to trade and becomes an exporter of a good.Consumer surplus ________ and producer surplus ________.

Canada imports cars from Japan.If Canada imposes a tariff on cars imported from Japan, Canadian

Use the information below to answer the following questions. Fact 7.3.1 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 7.3.1.When Canadian tariffs are removed from a good, Canadian consumers of the good ________, and Canadian producers of the good ________.

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 deadweight loss from the tariff is

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

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, with international trade, ________ million shirts per year are produced in Canada.

When Canada exports a good, Canada's consumer surplus ________ and Canada's total surplus ________.

Table 7.2.1 -Table 7.2.1 shows a country's demand and supply schedules.Based on Table 7.2.1, suppose the world price is $4 a unit.The country

Which of the following is a Canadian service export?

The fundamental force that drives international trade is

Of the groups listed below, which is most likely to lobby for protection?

Goods and services that we buy from other countries are our

In one year, Brazil exported more than 1.8 billion kilograms of coffee to the rest of the world.We can conclude that

An import quota is