Canada is both an importer and an exporter of cars. If Canada exports more cars than it imports and the price of cars rises, then ceteris paribus, Canada's terms of trade... O a. Deteriorates because the gain in imports more than offsets the loss of exports. o b. Remains the same because the index of export prices rises by the same amount as the index of import prices. O c. Improves because the index of export prices rises and the index of import prices falls. o d. Improves because the index of export prices rises more than the index of import prices. O e. Deteriorates because of the loss of exports that would result.

Canada is both an importer and an exporter of cars. If Canada exports more cars than it imports and the price of cars rises, then ceteris paribus, Canada's terms of trade... O a. Deteriorates because the gain in imports more than offsets the loss of exports. o b. Remains the same because the index of export prices rises by the same amount as the index of import prices. O c. Improves because the index of export prices rises and the index of import prices falls. o d. Improves because the index of export prices rises more than the index of import prices. O e. Deteriorates because of the loss of exports that would result.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter1: Welcome To Economics!

Section: Chapter Questions

Problem 9SCQ: Why might Belgium, France, Italy, and Sweden have a higher export to GDP ratio than the United...

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Why might Belgium, France, Italy, and Sweden have a higher export to GDP ratio than the United States?
15. While import tariffs and import quotas can both be used to protect domestic producers, the import quota is the more effective policy when the policy goal is O a. To raise government revenue O b. To protect producers from declines in domestic demand O. To minimize the inefficiency of the trade barrier O d. To protect domestic producers from declines in the world price
What happens to the volume of trade and the terms of trade when a large nation imposes a tariff? O a. The volume of trade increases, and the terms of trade improve. b. The volume of trade decreases, and the terms of trade improve. increases, and the terms of trade deteriorate. The volume of trade O d. The volume of trade decreases, and the terms of trade deteriorate.
An export subsidy always makes a country worse off on net. O True O False
Assume, for Vietnam, that the domestic price of textiles without international trade is lower than the world price of textiles. This suggests that, in the production of textiles, O Vietnam has a comparative advantage over other countries and Vietnam will export textiles. O other countries have a comparative advantage over Vietnam and Vietnam will export textiles. O other countries have a comparative advantage over Vietnam and Vietnam will import textiles. O Vietnam has a comparative advantage over other countries and Vietnam will import textiles. MacBook A esc D00 FA F1 F2 F3 FS % 4 Q W E R T tab I A S D F G s lock
20. Assume that two countries (Home and Foreign) each produce two goods (wheat and rice) under constant cost production. Home produces 3 tons of rice or 1 ton of wheat with a day of labour. Foreign produces 2 tons of rice or 4 tons of wheat each day of labour. Without trade (in autarky), Home's daily production is 60 tons of rice and 20 tons of wheat. At which international price will Home's gains from trade be largest? A. 3 tons of rice per ton of wheat B. 2.5 tons of rice per ton of wheat C. 2 tons of rice per ton of wheat D. 1.5 ton of rice per ton of wheat E. 1 ton of rice per ton of wheat
A country engaging in trade according to the principles of comparative advantage gains from trade because it O a. is producing exports while outsourcing services. O b. is producing exports using fewer labour units. is producing imports indirectly more efficiently than it could domestically. d. is producing exports indirectly more efficiently than it could alternatively. O e. is producing imports indirectly using fewer labour units. 4
Just clarify "tariffs on a variety of American exports..." to identify who is imposing these tariffs, i.e., the US government or foreign governments?
For The Canadian Company Embridge choose a country that it exports to (do not chose the U.S.A.) Developan understanding of this foreign country’s trade partnership with Canada by answering the following questions.1. How significant is this country to Canada’s overall trade picture?2. Is it a risky market?3. Is there an imbalance in trade (imports/exports)?4. Is there something unique about doing business with this country?5. How is the country’s economy changing?Resources: Use www.cia.gov/the-world-factbook/ orhttps://wits.worldbank.org/CountrySnapshot/en/CAN
When countries specialize in the production of goods they have the comparative advantage in, both and will increase O prices, the trade deficit O production, consumption price level, unemployment consumption, unemployment
Figure: World Imports Domeste dend The imposition of a $20 tariff would generate a valur of lost gains from trade of O S45. O S0. O S70 091S O
A "static" gain resulting from the formation of the European Union or the U.S.-Mexico-Canada Trade Agreement would be O expanded size of the market due to trade, resulting in economies of large-scale production and decreasing unit cost. outward shifts in a country's production possibilities frontier made possible by the discovery of new technologies. O facing lower priced, zero-tariff imports from members, consumers increase their demand for these goods, and new trade will be created O increased saving and investment resulting in capital accumulation and economic growth.