Exam 9: Global Markets in Action

When a nation exports a good,its ________ surplus increases,and when it imports a good,its ________ surplus increases.

A tariff makes the total economy

The United States exports a good if its no-trade U.S.price is ________ its world price.With international trade,U.S.production of the good ________ compared to the level of no-trade production.

-The above figure shows the U.S.market for chocolate.With international trade,________ is the transfer of surplus from producers to consumers.

The United States imposes a tariff on foreign limes.How does the tariff affect the U.S.price of a lime and the production of limes in the United States?

The figure above shows the U.S. market for T-shirts, where SUS is the domestic supply curve and DUS is the domestic demand curve. The world price of a T-shirt is $5. The U.S. government imposes a $2 per unit tariff on imported T-shirts. -The figure above shows that the U.S.net ________ surplus from the tariff is ________.

The agreement between the United States,Mexico,and Canada that sought to lower trade barriers is known as

With no international trade,the U.S.price of wheat is lower than the world price of wheat.This indicates that the United States ________ a comparative advantage in the production of wheat and with international trade,the United States will ________ wheat.

The figure above shows the U.S. market for T-shirts, where SUS is the domestic supply curve and DUS is the domestic demand curve. The world price of a T-shirt is $5. The U.S. government imposes a $2 per unit tariff on imported T-shirts. -The figure above shows that as a result of the tariff,producer surplus in the United States

If the government decides to impose a new tariff on orange juice from Brazil,the tariff would lead to ________ the tariff revenue collected by the U.S.government.

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

The imposition of a quota ________ domestic production,________ imports,and ________ domestic purchases.

If the United States exports planes to Brazil and imports ethanol from Brazil,the price received by U.S.producers of planes ________,and the price received by Brazilian producers of ethanol ________.

In the wake of worsening relations with China,some Americans called for an increase in tariffs on Chinese products coming into America.If higher tariffs are imposed on clothing produced in China,the price of clothing in America would

-The above figure shows the U.S.market for replacement cell phone batteries.With free international trade,the United States

Who gains from imports? How do they gain? Who loses? How do they lose? Does the overall economy gain or lose from imports?

Which of the following is true? i.When the world price of a good is lower than the price that balances domestic supply and demand,a country gains from exporting the good. ii.Compared to a no-trade situation,in a market with imports,consumer surplus is larger. iii.Quotas raise the domestic price of imported goods.

The infant-industry argument is used by those who assert they want to

________ occurs when a foreign firm sells its exports at a lower price than its cost of production.

A nation has a comparative advantage in a good when it has a