Parkin Bade Economics: Canada in the Global Economy Copyright © 2010 Pearson Education Canada C l i c k e r Q u e s t i o n s

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 exporting- industries. 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 voluntary export restraint. 2B tariff. 3C subsidy financed out of taxes. 4D 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 saving jobs. 2B dumping. 3C avoiding a tariff. 4D 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 generally declined. 2B steadily risen. 3C increased during expansions. 4D 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.