Exam 34: International Trade

Suppose that a tariff is imposed on imported cheese.This will have the effect of __________ the quantity consumed of cheese,__________ consumers' surplus,and __________ the government's tariff revenues.

The effects of a quota include:

Exhibit 34-9 -Refer to Exhibit 34-9.In the no specialization-no trade case,suppose country X produces and consumes 100 units of good A and 20 units of good B.Country Y produces and consumes 20 units of good A and 60 units of good B.If the two countries specialize and trade,and the actual amounts traded are 125 units of good A for 25 units of good B,how many more units of good A will country X consume by specializing and trading?

A quota is

Global technologies,such as electronics,have made up a significant portion of the recent wave of manufacturing offshoring.

One country has a comparative advantage over another country in the production of a good if it

Evidence indicates that tariffs and quotas are

When countries engage in specialization and international trade,every individual person in those countries will gain.

Consumers receive more consumers' surplus when __________.

A tariff on avocadoes ______________ the price of avocadoes,_____________ consumers' surplus for avocado buyers,_______________ producers' surplus of avocado growers and __________________ tariff revenue.Because the loss to _____________ is more than the gain to ___________________,there is a net loss to society.

Which of the following statements about a tariff and a quota is true?

The term outsourcing is used to describe work done for a company by individuals working for another company in a different country.

Which of the following is a major import for the United States?

List and describe three arguments that help to explain why nations sometimes restrict trade.Does everyone agree with these arguments?

The effect of a tariff is

The ability to produce a good at a lower opportunity cost than others is called a(n)__________ advantage.

Exhibit 34-2 -Refer to Exhibit 34-2.The U.S.demand and supply for a good are shown.Under a policy of free trade,the world price is PW.If there is a policy change such that imports are prohibited,the price becomes P_N.U.S.producers are better off if imports are __________; specifically,their producers' surplus changes by area __________.

Consumers' surplus is the difference between the price

Exhibit 34-10 -Refer to Exhibit 34-10. Jason's opportunity cost of cleaning the house is

Which of the following conditions makes it most likely for a quota to be imposed?