Transcript International trade policy quizes in power point format

Clicker Questions
Parkin Bade Economics: Canada in the Global Economy
Copyright © 2010 Pearson Education Canada
Q1: Which of the following is correct?
1A Canadian imports and exports include both
goods and services.
2B Imports includes both goods and services
but exports includes only goods.
3C Imports include only goods, but exports
include both goods and services.
4D Both exports and imports include goods and
neither includes services.
Parkin Bade Economics: Canada in the Global Economy
Copyright © 2010 Pearson Education Canada
Q2: A country that trades internationally will
specialize by producing only the
1A goods with an opportunity cost above the
world price.
2B goods with an opportunity cost below the
world price.
3C goods which use fewer hours of labour to
produce than those in another country.
4D goods from which domestic consumers get
the highest marginal benefit.
Parkin Bade Economics: Canada in the Global Economy
Copyright © 2010 Pearson Education Canada
Q3: If Canada specialize in the production of
regional jets, __________
1A more regional jets will be produced in
Canada.
2B there will be no change in the price of a
regional jet in Canada.
3C the world price of a regional jet will increase.
4D the quantity of regional jets demanded by
Canadian airlines will increase.
Parkin Bade Economics: Canada in the Global Economy
Copyright © 2010 Pearson Education Canada
Q4: Which of the following statements is true?
1A International trade raises wages in developing
countries.
2B International trade with rich industrial countries
forces people in the developing countries to
work for lower wages.
3C International trade leads to job losses in both
import-competing industries and exportingindustries.
4D Unlike other types of international trade,
offshoring does not bring any gains from trade.
Parkin Bade Economics: Canada in the Global Economy
Copyright © 2010 Pearson Education Canada
Q5: The most efficient way to encourage the
growth of an infant industry is through a
1A
2B
3C
4D
voluntary export restraint.
tariff.
subsidy financed out of taxes.
an import quota.
Parkin Bade Economics: Canada in the Global Economy
Copyright © 2010 Pearson Education Canada
Q6: When a foreign firm sells its exports at a
lower price than its cost of production, the firm
is
1A
2B
3C
4D
saving jobs.
dumping.
avoiding a tariff.
competing in an infant industry.
Parkin Bade Economics: Canada in the Global Economy
Copyright © 2010 Pearson Education Canada
Q7: A Canadian tariff imposed on items that can
be produced more cheaply abroad
1A benefits Canadians by making these goods
cheaper.
2B makes the goods more expensive in foreign
markets.
3C creates a deadweight loss.
4D equalizes the cost of production between
the Canada and foreign producers.
Parkin Bade Economics: Canada in the Global Economy
Copyright © 2010 Pearson Education Canada
Q8: Since 1930, tariff levels in Canada have
1A
2B
3C
4D
generally declined.
steadily risen.
increased during expansions.
decreased during recessions.
Parkin Bade Economics: Canada in the Global Economy
Copyright © 2010 Pearson Education Canada
Q9: When a firms “dumps” some of its products
in another country, it
1A creates an environmental hazard in the
receiving country.
2B sells its products abroad at a price lower
than it costs to produce the goods.
3C increases the total level of employment in
the receiving country.
4D is specializing according to comparative
advantage.
Parkin Bade Economics: Canada in the Global Economy
Copyright © 2010 Pearson Education Canada
Q10: Some observers opposing free trade
argue that when we buy beef from Australia or
shirts from Taiwan, Canadian workers lose their
jobs. The fact of the matter is that
1A no Canadian worker has actually lost a job
because of free trade.
2B most jobs lost because of free trade pay
less than the minimum wage rate.
3C free trade creates jobs in export industries.
4D the jobs lost are concentrated in restricted
geographic areas.
Parkin Bade Economics: Canada in the Global Economy
Copyright © 2010 Pearson Education Canada