Exam 15: Exchange Rates and the Open Economy

The price at which a good or service is traded on international markets is called the _________ price.

The agreement that once a good has entered a country,it must be treated as equivalent to a domestically-produced good of the same type for purposes of taxation and regulation is called

The major international institutions affecting finance and trade today were first developed at a conference that took place in ________ in the year ________.

The General Agreement on Tariffs and Trade is

If an economy sees net exports fall due to a policy of trade liberalization,it will require the simultaneous adoption of ________ fiscal policy or ________ monetary policy in order to prevent a(n)________ gap.

Today,Canada's four leading trading partners are the

When Argentina's economy was experiencing a recessionary gap in the late 1990s,it ________ trade barriers to try to raise output.These policies ________ output in the short run.

The demand for DVD players in a country is given by D = 300 - 0.2P,where P is the price of a DVD player.Supply by domestic producers is given by S = 100 + 0.8P.The world price of a DVD player equals $100.In equilibrium,when this economy is closed to trade,the quantity of DVD players demanded domestically equals _________,and when this economy opens to trade,the quantity of DVD players demanded domestically equals __________.

A tax imposed on an imported good is called a

Use the following table to answer the question(s)below for Country Y,which is open to trade.Column 1 shows the price of a product,column 2 shows the domestic quantity demanded domestically (Qd),and column 3 shows the domestic quantity supplied (Qs). -Refer to the above table.At a price of $9.00,there will be

The theory that Canada's economic development was driven by natural resource exports is called the

The demand for laser printers in a country is given by D = 10,000 - 2P,where P is the price of a laser printer.Supply by domestic producers is given by S = 2,000 + 8P.If the world price of a laser printer equals $1,000 and this economy is open to trade,then this country will

From the time of Confederation in 1867 until World War Two,Canada's two major trading partners were the

An open economy is one that

A free trade area is an agreement that

The agreement that a special arrangement such as a reduced tariff offered to one country in the interests of opening up a market must be offered to all other members is known as

The winners from trade are the __________ and the __________.

A regional trade agreement is

If the world price is less than the domestic price of a commodity in a closed economy,when that economy begins to trade,the economy will __________ the commodity.

In the early stages of its development,Canada relied upon ________ as an important source of government revenue.