Exam 7: Global Markets in Action

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.Canadian producers' ________ from the tariff is ________.

The argument that protection

One reason that international trade is restricted is that

Tariffs and import quotas differ in that

A country moves from a situation of no trade to a situation where it exports a good.Which of the following does not occur in the market for this good in the exporting country?

Rent seeking is one reason why countries choose to

Refer to the table below to answer the following questions. Table 7.1.2 -Table 7.1.2 shows a country's demand and supply schedules for a good.Suppose the world price is $4 a unit.The country

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

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.The world price is $36 million per helicopter. -In Figure 7.2.2,if the economy moves from no trade to international trade,total surplus in Canada ________ by ________.

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

Choose the statement that is incorrect.

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

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

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

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

Refer to the figure below to answer the following questions. Figure 7.1.1 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 7.1.1,with international trade,Canadians buy ________ million shirts per year.

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

An import quota is a

Refer to the figure below to answer the following question. Figure 7.3.2 -Refer to Figure 7.3.2.The supply of peanuts in Canada is made up of Canadian grown peanuts and imported peanuts.Initially,Canada engages in free trade in the peanut market.Then Canada puts a quota on peanut imports.The graph shows the Canadian market for peanuts when the Canadian government puts a quota on peanut imports.The Canadian consumer surplus that is redistributed to Canadian producers is ________ and the quota creates a deadweight loss equal to ________.

If Canada imposes a tariff on imported cars,