Exam 7: Comparative Advantage and the Gains From International Trade

A numerical limit imposed by a government on the quantity of a good that can be imported into the country is called a

One reason a country does not specialize completely in production is that not all goods and services are traded internationally.

A tariff on imports

Figure 7.2 Suppose the Canadian government imposes a $0.40 per pound tariff on rice imports. Figure 7.2 shows the impact of this tariff. -Refer to Figure 7.2.Without the tariff in place, Canadians consume

Which of the following is not a source of comparative advantage?

A tariff is a tax imposed by a government on

Trade between countries that is without restrictions is called

Many people assume that if child workers in developing countries weren't working in factories, they would be in school.In fact, children in developing countries

________ is the ability of an individual, a firm, or a country to produce a good or service at a lower opportunity cost than competitors.

In order to avoid the imposition of other types of trade barriers, foreign producers will sometimes agree to voluntary export restraints.With voluntary export restraints, foreign producers

Figure 7.2 Suppose the Canadian government imposes a $0.40 per pound tariff on rice imports. Figure 7.2 shows the impact of this tariff. -Refer to Figure 7.2.The loss in domestic consumer surplus as a result of the tariff is equal to the area

Countries that engage in trade will tend to specialize in the production of goods and services in which they have ________ and will ________ these goods and services.

Suppose that Canadian firms claim that protectionism in the U.S.is on the rise as the American government attempts to protect its infant industries.This protectionism will cause the greatest harm to

Figure 7.1 Figure 7.1 shows Canadian demand and supply for leather footwear. -Refer to Figure 7.1.Suppose the government allows imports of leather footwear into Canada.The market price falls to $18.What are the values of consumer surplus and domestic producer surplus?

Figure 7.2 Suppose the Canadian government imposes a $0.40 per pound tariff on rice imports. Figure 7.2 shows the impact of this tariff. -Refer to Figure 7.2.With the tariff in place, Canada

Table 7.1 Bathing Grooming Linda 60 20 Sandy 50 25 Linda and Sandy own The Preppy Puppy, a dog grooming business. Table 7.1 lists the number of dogs Linda and Sandy can each bathe and groom in one week. -Refer to Table 7.1.Select the statement that accurately interprets the data in the table.

Canada is a leading exporter of wheat.What explains the comparative advantage of Canada in wheat production?

In 2012, Magna International sold ________ of what it made to countries outside the North American Free Trade Agreement.

Figure 7.3 Assume that the Canadian government limits the import of peanuts. -Refer to Figure 7.3.If there was no quota, how many kilograms of peanuts would domestic consumers purchase and what quantity would be imported?

In Canada, imports and exports combined make up more than half of GDP.