Chapter 14 Flashcards Preview

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Flashcards in Chapter 14 Deck (10):
1

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

2

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

3

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

4

what is a tarriff?

a tax on imported goods

5

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

6

what is rent seeking?

producer efforts to change profits from government protection such as tariffs and import quotas

7

what is a subsidy?

a program of financial assistance paid out to producers

8

who are canadas trading partners?

japan and the european union. the united states ( accounts for 73% of our exports and 63% of our imports..

9

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

10

what has been the impact of the international trade on canada?

the volume of international trade has increased substantially in canada over the past 50 years. during that time, exports and imports have grown from about 20% GDP to over 30%