Exam 7: Global Markets in Action

When the United States exports a good, the amount of the ________ in U.S. consumer surplus is ________ the amount of the ________ in U.S. producer surplus.

A tariff

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. -In the figure above, with international trade ________ million shirts per year are produced in the United States.

A tariff will benefit

In 2006, the European Union tariff on imported bananas from Latin America was €176 a ton. Suppose 2.5 million tons of bananas were imported in 2006 but then the tariff decreased to €152 a ton in 2007 and as a result, 3 million tons were imported in 2007. What is the tariff revenue in 2007?

U.S. producer surplus ________ when the United States imports a good and U.S. producer surplus ________ when the United States exports a good.

How does the United States attempt to compensate losers from lower trade restrictions?

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. producers' ________ from the tariff is ________.

With international trade, a country will export tires. Prior to international trade, the quantity of tires produced in the country ________ the quantity of tires consumed in the country.

In 2006, the European Union (EU) threatened to ban imports of long-grain rice because traces of genetically modified rice were found mixed in to commercial supplies. Instead of a ban, suppose the EU placed a tariff on the import of long-grain rice. Which of the following would be an outcome of this tariff?

Tariffs and import quotas differ in that

Some observers opposing free trade argue that when we buy shoes from Brazil, U.S. workers lose their jobs. The fact of the matter is that

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 ________.

Increasing a tariff will ________ the domestic quantity consumed of the good, while ________ the domestic production of the good.

A U.S. tariff imposed on items that can be produced more cheaply abroad

Import quotas

Using calculations of the cost to Americans per job saved in protected industries, it can be concluded that

Quotas and tariffs both

The most efficient way to encourage the growth of an infant industry is through

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, with the tariff American consumers ________ million shirts per year.