Exam 15: International Trade Policy

Compared to the situation before international trade, after the United States exports a good , then production in the United States ________ and consumption in the United States ________.

If a government imposes a quota on imports of a popular doll, the price of the doll in the country will ________ and the quantity purchased in the country will ________.

A tariff is imposed on a good. The tariff will ________ quantity supplied, ________ quantity demanded, and ________ the price of the good in the home country.

During the first 6 months of 2008, the United States imported from Africa, Asia, and Latin America more than 1.6 billion pounds of coffee and did not export any coffee. How is the gain from imports distributed between consumers and domestic producers?

What are the effects of a tariff?

Which of the statements about the gains from international trade is CORRECT?

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. The United States imposes a tariff on imported shirts of $4 per shirt. -In the figure above, the tariff ________ U.S. imports of shirts by ________ million shirts per year.

Comparative advantage implies that a country will

How does a tariff affect the domestic price of the import, the domestic consumption, the domestic production, and the quantity imported?

Which of the following statements is TRUE?

Of the following, in which decade were U.S. tariffs at their lowest level?

Tariffs and quotas both decrease the amount of a good consumed and raise the price paid by domestic residents for the good.

Because the price of an imported good ________, then ________ gain from imports.

Most economists agree that valid reasons for protecting trade include which of the following? I. the economies of scale argument II. the saving jobs argument III. the protection of high wages argument

Because the price of an imported good ________, then ________ lose from imports.

An import quota specifies the

The figure shows the market for shirts in the United States, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt. The United States imposes a tariff on imported shirts of $4 per shirt. -In the figure above, with the tariff Americans buy ________ million shirts per year.

A voluntary export restraint

Prior to international trade, if country A has a lower price of good X than does country B, then we know definitely that

It is possible for the United States to compete against cheap foreign labor because expensive domestic workers