Exam 9: Global Markets in Action

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 above figure shows the domestic supply of and domestic demand for an imported good.The world price is $15 per unit. a.At the world price of $15 per unit,what is the domestic consumption and domestic production? b.At the world price of $15 per unit,what is the quantity imported? c.If the government imposes a tariff of $5 per unit,what is the domestic consumption and domestic production? d.With the $5 per unit tariff,what is the quantity imported? e.How much revenue does the government collect with a tariff of $5 per unit?

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 above figure shows the U.S.market for flip-flops.When there is no international trade,the U.S.price is ________ per flip-flop and the U.S.quantity is ________ flip-flops.

A specified maximum amount of the good that may be imported in a given period of time is a

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

-The above figure shows the U.S.market for replacement cell phone batteries.With free trade,U.S.production is equal to ________ batteries per year.When a $2 tariff is in place,U.S.production is equal to ________ batteries per year.

If supporters of restrictions on imports argue that protection is needed to preserve a strategic industry,which of the following is being used?

Of the following,who gains with a tariff?

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

How do imports affect sellers' producer surplus?

-The above figure shows the U.S.market for replacement cell phone batteries.Area C is the

-The above figure shows the U.S.market for replacement cell phone batteries.The U.S.government collects tariff revenue of ________ on each battery imported.

Suppose the United States subsidizes domestic chicken production and then sells surpluses on the world market at a price below the cost of production.In foreign countries,the argument that would made to restrict chicken trade with the United States would be the

Relative to free trade,when a tariff is imposed in a market for an imported good

-The United States imports cheese from a variety of countries.The table above gives the domestic supply of,and demand for,cheese in the United States.The world price of cheese is $12 per pound,and trade is unrestricted. a.How many pounds of cheese are consumed in the United States? b.How many pounds of cheese are produced in the United States? c.How many pounds of cheese are imported into the United States? If a $3 per pound tariff is imposed, d.How many pounds of cheese are consumed in the United States? e.How many pounds of cheese are produced in the United States? f.How many pounds of cheese are imported into the United States? g.How much will the U.S.government collect in tariff revenue? h.Who benefits from the tariff? Who loses?

Economists argue for free trade in import markets because

-The table above has the domestic demand and domestic supply schedules for a good.According to the table,the no-trade price of the good is

-The figure above shows the U.S.demand and U.S.supply curves for cherries.Suppose the world price of cherries is $2 per pound.At this price,U.S.consumption of cherries will equal

-The above figure shows the U.S.market for chocolate.With no international trade,consumer surplus is equal to