Exam 9: Global Markets in Action

Assume that the state of Missouri decided to place a tariff on every product produced outside the state in an effort to increase the state's revenue and increase employment in the state.If Missouri did so,

If the opportunity cost of producing a T-shirt is ________ in China than in the United States,China has ________ advantage in producing T-shirts.

How does a quota affect the consumer surplus and the producer surplus from the imported good? Is the overall economy helped or harmed by quotas? Briefly explain your answers.

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

A country will export a good if it

When a nation exports a good or service,employment in that industry

Currently,the United States has a 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 quota was removed? What would happen to U.S.consumption and U.S.production of sugar?

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,the quantity of T-shirts produced in the United States ________,and the quantity of T-shirts imported ________.

-The above figure shows the U.S.market for 1 carat diamonds.With free trade,the United States produces ________ diamonds and imports ________ diamonds.

If Country A opens up their corn market to trade with the rest of the world and the global price of corn is higher than the equilibrium price of corn in Country A,then Country A will ________ corn,which will ________ consumer surplus,________ producer surplus,and ________ total surplus.

-Based on the figure above,as a result of international trade,producer surplus

"Tariffs today in the United States are much higher than in the past." Is the previous statement correct or incorrect?

Imports are defined as the goods and services that we

When a good is imported,the domestic production of it ________ and the domestic consumption of it ________.

The ________ are hurt by importing a good.

-Based on the figure above,as a result of international trade,consumer surplus

After NAFTA was signed,the United States allowed more tomatoes to be imported from Mexico.What happened to the price of tomatoes in the United States when the United States allowed more tomatoes to be imported?

The United States

Which type of policy raises the most revenue for the government?

Goods and services that we buy from firms in other countries are called our