Exam 9: Global Markets in Action

As a result of U.S.tariffs on fishnets produced in other nations,the quantity of fishnets purchased in the United States has

A quota is a

When the United States imports goods from the rest of the world,which of the following parties is harmed? i.domestic producers of the good ii.domestic consumers of the good iii.foreign producers of the good

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

Of the following,who gains with a quota?

When a nation exports a good or service,the nation's consumer surplus ________,its producer surplus ________,and its total surplus ________.

-The above figure shows the U.S.market for 1 carat diamonds.Suppose the United States imposes the import quota shown in the figure.With the import quota,how many diamonds can be imported?

While high-paid American workers fear competition with low-paid foreign workers,low-paid foreign workers fear competition with high-paid American workers.Why?

If the United States imposes a tariff on a good,then

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

Relative to free trade,domestic producers of a good are _______ off with a tariff because of the ________ .

What is rent seeking with respect to restricting international trade?

Of the following,________ account(s)for the largest share of imports into the United States.

After a nation starts importing a good from overseas,the domestic price of the good

How can a domestic producer determine whether or not it has a comparative advantage in the production of a good or service?

-The above figure shows the U.S.market for replacement cell phone batteries.Area A + area E is the

Since the mid-1970s,the average U.S.tariff rate is

-The above figure shows the U.S.market for chocolate.With international trade,consumer surplus is equal to

During the past 70 years,the peak average tariff rate in the United States stemmed from the

Three arguments used to promote trade barriers are the national security argument,the infant-industry argument,and the dumping argument.Explain each of these arguments and evaluate whether each one has any flaws.