Exam 7: Global Markets in Action

Japan was accused of dumping in the steel industry within the United States when it

A tariff is

When a rich nation buys a product made in a poor nation, in the poor nation the demand for labor ________ and the wage rate ________.

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

A tariff on imported peanuts ________ the quantity of peanuts imported and ________ the domestic price of peanuts.

An import quota restricts ________ and is designed to protect domestic ________.

Tariffs ________ consumer surplus and import quotas ________ consumer surplus.

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

In 2008, Agriculture Secretary Ed Schafer announced that Chile's Livestock and Agricultural Service approved the U.S. inspection, control and certification systems for poultry, allowing these products to enter the Chilean market. What is NOT an effect of this change in Chilean policy on the Chilean poultry market?

Suppose that the country of Pacifica imposes a quota on bananas. The reason that the government imposed this trade restriction could be

Import quotas are less damaging to an economy than are tariffs.

During the first 6 months of 2008, the United States imported more than 1.6 billion pounds of coffee. Suppose the United States is considering placing trade restrictions on the importation of coffee. What would be a potential consequence of such a trade restriction?

Based on the table below, at what world price would the country import the good?

Based on the table below, at what world price would the country export the good?

Reducing a tariff will ________ the domestic production of the good and ________ the total domestic consumption of the good.

One reason that international trade is restricted is that

In a market open to international trade, at the world price the quantity demanded is 150 and quantity supplied is 200. This country will

The United States has a comparative advantage and specialize in the production of airplanes. Compared to the situation with no trade, which of the following will occur?

Currently, the United States has an import quota on the amount of sugar that is allowed to be imported into the United States. What would happen to the price of sugar in the United States if the import quota was removed? What would happen to U.S. consumption and U.S. production of sugar?

A difference between a quota and a tariff is that