Flashcards in Chapter 14 Deck (10):
describe the absolute advantage.
the ability of a party ( nation, region, or individual) to produce more of a good or service while using the same amount of inputs
what is a consumer surplus?
the difference between what a consumer is willing and able to pay and what the consumer actually pays for the quantity of a good or service
what is a producer surplus?
the difference between the lowest price at which a supplier is willing and able to supply a good or service and the actual price received for a given quantity for a good or service
what is a tarriff?
a tax on imported goods
what is an import quota?
a legal limit on the imported quality of a good that is produced abroad and can be sold in domestic markets
what is rent seeking?
producer efforts to change profits from government protection such as tariffs and import quotas
what is a subsidy?
a program of financial assistance paid out to producers
who are canadas trading partners?
japan and the european union. the united states ( accounts for 73% of our exports and 63% of our imports..
what does canada import and export?
exports: natural resources make up 60%
imports: concentrated in finished goods (electronics and electronic equipment, motor vehicles and consumer goods