Which of the Following Is Correct with Regard to Canada's

question 207

Multiple Choice

Which of the following is correct with regard to Canada's balance of trade?

• A) Canada had a trade surplus of $4.6 billion in 2014.
• B) The United Kingdom is Canada's largest trading partner.
• C) Canada's generally favourable trade balance over the years has occurred because our unfavourable balance of trade with the United States is offset by our favourable balance of trade with most other countries.
• D) Canada has generally had an unfavourable balance of trade.
• E) None of these.

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Definitions:

Purely Competitive Industry

An economic setup where numerous purchasers and vendors exist, entry and exit are unrestricted, and the product offered is identical across sellers.

Oligopoly

Oligopoly is a market structure characterized by a small number of firms whose decisions about production and pricing significantly affect the market.

Monopolistically Competitive Industry

An industry characterized by many firms selling products that are similar but not identical, allowing for competition based on product differentiation.

Monopolistic Competition

A market structure in which many firms sell products that are similar but not identical, allowing for some degree of market power.