Question 1

The fall in Canada's average tariff rate is due in part to the establishment of the

Accepted Answer

The General Agreement on Tariffs and Trade (GATT) was a multilateral agreement that aimed to reduce tariff barriers and establish greater international trade. Canada was one of the signatories to this agreement, and as such, the fall in its average tariff rate can be attributed in part to the establishment of the GATT.

Question 2

In some recent years in Canada,exports and imports have each amounted to ________ of Canadian GDP.

Accepted Answer

E

Question 3

The theory that Canada's economic development was driven by natural resource exports is called the

Accepted Answer

The theory that Canada's economic development was driven by natural resource exports is called the staples thesis. This theory proposed that Canada's economy was based on the export of primary commodities, or "staples," such as fish, fur, timber, and minerals, which fueled growth and development. The highly influential thesis was developed by economic historians Harold Innis and W.A. Mackintosh in the early 20th century.

Question 4

In the mid-1940s,the United States and the United Kingdom were of roughly equal importance as trading partners of Canada.Since then,the share of Canadian exports going to the United States has ________ and the share going to the United Kingdom has ________.

Accepted Answer

The share of Canadian exports going to the United States has risen to about 80%, while the share going to the United Kingdom has fallen to about 3%. This reflects the increasing economic integration between Canada and the United States, particularly after the implementation of trade agreements like NAFTA.

Question 5

Canada's average tariff rate peaked at ________ in 1888 but dropped below ________ by 1996.

Accepted Answer

According to the information provided, Canada's average tariff rate peaked at an unknown percentage in 1888 but dropped below 1% by 1996. The best choice that fits these parameters is D, which states that the average tariff rate peaked at 22% and dropped below 1%.

Question 6

From the time of Confederation in 1867 until World War Two,Canada's two major trading partners were the

Accepted Answer

The United Kingdom and the United States were Canada's two major trading partners from Confederation in 1867 until World War Two. The United Kingdom was Canada's largest trading partner during this time period, but the United States surpassed them in the 1920s. France, Japan, and China were not among Canada's top two trading partners during this time period.

Question 7

Imports from China accounted for only 1% of Canada's imports in 1989 but ________ of Canada's imports by 2011.

Accepted Answer

By 2011, imports from China had grown significantly to account for 11% of Canada's imports, reflecting the increasing trade relationship between the two countries over the years.

Question 8

Starting after World War Two,Canada's share of trade with ________ began to rise dramatically,while its share of trade with ________ began to decline dramatically.

Accepted Answer

After World War Two, Canada's trade with the United States increased significantly due to geographical proximity and economic ties, while its trade with the United Kingdom decreased as the UK focused more on European markets.

Question 9

In the early stages of its development,Canada relied upon ________ as an important source of government revenue.

Accepted Answer

In the early stages of Canada's development, the country relied heavily on tariffs (taxes on imported goods) as a significant source of government revenue. This was particularly true in the late 19th and early 20th centuries when Canada was developing its industrial capacity and needed to protect its domestic industries from foreign competition. Income taxes, sales taxes, payroll taxes, and property taxes became more significant sources of revenue later on.

Question 10

The world price is the price at which

Accepted Answer

The world price refers to the price at which a good or service is traded on international markets. Option D accurately describes this definition.

Question 11

A country that trades with other countries is called a(n)__________ economy.

Accepted Answer

A country that trades with other countries is called an open economy, as it engages in international trade and foreign investment. The other options are not applicable as structural refers to the makeup of an economy, nominal refers to the value of currency, and centrally planned and closed economies do not actively engage in trade with foreign entities.

Question 12

Today,Canada's four leading trading partners are the

Accepted Answer

Canada's four leading trading partners are the United States, China, Mexico, and the United Kingdom, with the United States being the most significant due to the proximity and trade agreements like USMCA.

Question 13

The G7 country with the highest ratio of trade to GDP is

Accepted Answer

Germany has the highest ratio of trade to GDP among G7 countries, with a ratio of 87.7%. This is due to Germany's highly export-oriented economy, which heavily relies on international trade. The other options have trade-to-GDP ratios of Canada (63%), Japan (38%), Italy (28%), and the United States (27%).

Question 14

A country that does not trade with other countries is called a(n)_________ economy.

Accepted Answer

A closed economy is one that does not engage in international trade, meaning it does not import or export goods and services with other countries. The economy is self-sufficient and depends only on its own resources.

Question 15

The staples thesis maintains that Canada's economic development was driven by

Accepted Answer

The staples thesis argues that Canada's economic development was primarily driven by the exportation of natural resources such as fur, fish, timber, and minerals, which provided the foundation for the country's economic growth and expansion.

Question 16

Compared to the other G7 countries,Canada has a ratio of trade to GDP that is

Accepted Answer

Canada's ratio of trade to GDP is higher than the average for G7 countries, but it is not the highest among them.

Question 17

The major development in Canada's trade pattern in the last several years has been the rise of ________ as a source of imports.

Accepted Answer

The rise of China as a source of imports has been one of the most significant developments in Canada's trade pattern in recent years. China has become Canada's second-largest trading partner after the United States, with imports from China accounting for a significant portion of Canada's overall imports.

Question 18

A closed economy is one that

Accepted Answer

A closed economy does not trade with other countries, meaning all production and consumption takes place within the boundaries of the country.

Question 19

Canada's top three export categories in 2008-2010 were

Accepted Answer

The answer of Canada's top three export categories in 2008-2010...

Question 20

An open economy is one that

Accepted Answer

An open economy is one that trades with other countries, allowing for the exchange of goods, services, and capital across national borders. This can lead to increased economic opportunities and growth as well as increased risks and vulnerability to external shocks. A flexible exchange rate may be a characteristic of an open economy, but it is not a defining feature. The reliance on a market system versus central planning is not necessarily linked to the degree of openness of an economy.

Quiz 15: Exchange Rates and the Open Economy