International Markets

The principle of comparative advantage was first formulated in the 18th century by

David hurme

A country that engages in no foreign trade is said to be in a situation of

Autarky

Efficiency gains from the introduction of free trade in an export market will be largest when

Demand is elastic and supply is elastic

Efficiency gains from the introduction of free trade in an import market will be largest when

Demand is elastic and supply is elastic

The existence of any "gains from trade" relies on

Comparative advantage

If Canada's index of export prices is 250 and the index of import prices is 200, then the index of the terms of trade is equal to __________

125

Economies of scale and product differentiation can provide an explanation for

intra-industry trade

The imposition of a tariff on an imported good causes consumer surplus to __ and producer surplus to _.

Decrease;increase

A $10 per-litre tariff on all wine imported into Canada will

Protect that production of cheaper wines more than expensive wines

A 10 percent tariff on all wines imported into Canada will

Equally protect the production of all Canadian wines

The effect of the imposition of a new tariff is to ___ domestic production of the commodity and ___ the domestic consumption of the commodity.

increase;decrease

Efficiency losses from the introduction of a tariff in an import market will be largest when

Demand is elastic and supply is elastic

Efficiency gains from the elimination of a tariff in an import market will be largest when

Demand is elastic and supply is elastic

Efficiency losses from the introduction of a quota in an import market will be largest when

Demand is elastic and supply is elastic

Efficiency gains from the elimination of a quota in an import market will be largest when

Demand is elastic and supply is elastic