Many of the benefits of exports to Canadians are straightforward. However, the key message about the benefits of trade is intended for the average Canadian-who may never have realized how much trade improves the quality of the Canadian way of life. We have tried to keep these portions as short and non-technical as possible, perhaps too general for the more technical reader. The theoretical aspects of the analysis have been confined to a few broad sections. The focus is on Canada and, where possible, we bring forward evidence that pertains to, or can be applied to, Canada. The purpose of this special feature is to delve deeper into the benefits that trade brings to an economy and/or its citizenry. The structure and the organization of the entire economy are crucially dependent on trade and integration with regional and global trading networks. Taken from another perspective, this vastly understates how dependent Canada is, and Canadians are, on trade. Footnote 41 Yet this is simply an accounting of how much spending in the economy is accounted for by exports. From one vantage, the trade data suggest, as a first order of approximation, that one in five jobs in Canada depend on exports, either directly or indirectly. The answer to the question is, however, multi-dimensional and not entirely computable. Economic models and theories can also be used to ask the question of what is the benefit of international trade to Canada. Indeed, the share of trade in the economy has risen over the decades, in particular during the 1990s when it climbed nearly 34 percentage points following the elimination of most of the trade-dampening tariff barriers between Canada and two of its most important trading partners-the United States and Mexico.īut statistics only partially highlight the importance of international trade to Canada and Canadians. Thus, the share of trade in the economy was about 63.3 percent in 2011. Consider that, in 2011, Canada’s exports and imports of goods and services were approximately $1.1 trillion in total- which is, on average, about $31,600 for every person in Canada, or $3 billion each and every day-and that the overall size of Canada’s economy, as measured by its gross domestic product ( GDP), was $1.7 trillion last year. Tres, (Click to select) Regulated monopoly ✓ Unregulated monopoly INSĮ.Canada depends heavily on trade to sustain incomes and living standards of Canadians and the prosperity of the nation. If the daily wage paid to workers falls to $121 per day, how many workers will the unregulated monopoly demand? worker(s) How many workers will the regulated monopoly demand? worker(s) Looking at those figures, will the regulated or the unregulated monopoly demand more workers at that wage? (Click to select e Comparing your answers to parts cand d, does regulating a monopoly's output price always increase its demand for resources? Click to select If the daily wage paid Io workers is $258 per day, how many workers will the unregulated monopoly demand? worker(s) How many workers will the regulated monopoly demand? worker(s) Looking at those figures, will the regulated or the unregulated monopoly demand more workers at that wage? Unregulated monopolyĭ. At that price, what is the firm's MRP for each of the first five workers? Worker MRP Regulated 1 2 3 4 5 c. Suppose that the monopolist is subjected to rate regulation and the regulator stipulates that it must charge exactly $62 per unit for all units sold. What is the firm's MRP for each of the first five workers? Worker MRP Unregulated 1 2 3 4 5ī. Instructions: Enter your answers as a whole number. Further suppose that the first worker hired produces 5 units per day, the second 4 units per day, the third 3 units per day, and so on. Suppose that a monopoly firm finds that its MR is $72 for the first unit sold each day, $71 for the second unit sold each day, $70 for the third unit sold each day, and so on.
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