Canada Is a Net Exporter of Oil

question 69

Multiple Choice

Canada is a net exporter of oil. An increase in the world price of oil, ceteris paribus, means that Canada's terms of trade will

• A)not change.
• B)deteriorate.
• C)improve as long as all of Canada's production of oil is being exported.
• D)deteriorate as long as Canada exports more oil than it imports.
• E)improve.

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Definitions:

External

Situated outside, coming from outside, or relating to an outer part or aspect of something.

Representativeness Heuristic

A mental shortcut where the likelihood of an object belonging to a category is judged based on how typical the object seems of that category.

Ease of Retrieval Effect

A cognitive bias where people judge an event to be more likely or frequent if examples of it come to mind easily.

Primacy Effect

The tendency to remember information at the beginning of a list better than the information that follows.