Exam 9: Global Markets in Action

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

If a nation can produce a good or service at the lowest opportunity cost,then it

Who gains from international trade?

If the United States imposes a tariff on foreign chocolate,how are foreign producers of chocolate affected?

-The above figure shows the U.S.market for flip-flops.With international trade,U.S.consumers buy ________ flip-flops and U.S.producers produce ________ flip-flops.

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

Imposing a tariff on a good leads to a ________ in the price of the product and ________ in imports.

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

When a country imports a good,the ________ in consumer surplus is ________ the ________ in producer surplus.

-The above figure shows the U.S.market for 1 carat diamonds.Area C is the

Briefly define a tariff and a quota.Do any of these methods restrict trade without harming domestic consumers?

If the world price of a good is below the no-trade domestic price,a country

A nation will import a good if its no-trade,domestic

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

Which of the following is true? i.Comparative advantage drives international trade. ii.Compared to a no-trade situation,in a market with imports,producer surplus is larger. iii.Tariffs lower the domestic price of imported goods.

The figure above shows the U.S. market for airplanes, where SUS is the domestic supply curve and DUS is the domestic demand curve. The United States trades freely with the rest of the world. The world price of an airplane is $150 million. -Based on the figure above,as a result of international trade,consumer surplus

-Merck,an American pharmaceutical company,produces a vaccination that is used against chicken pox.The table shows the domestic demand for,and supply of,this medication,measured in thousands of doses per day.The world price of this medicine is $24 per dose. a.With no trade,what is the U.S.price and quantity of the vaccine? b.At the world price,how many doses are demanded in the United States? c.At the world price,how many doses are produced in the United States? d.At the world price,how many doses are exported?

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

How do exports affect sellers' producer surplus?

-The figure above shows the U.S.demand and the U.S.supply curves of canned peaches. a.In the absence of trade,what is price of canned peaches in the United States? b.In the absence of trade,what is the level of production in the United States? c.If the world price of canned peaches is $1 a can and the United States engages in trade,does the United States import or export canned peaches? d.If the world price of canned peaches is $1 a can and the United States engages in trade,what is the quantity produced in the United States and what is the quantity consumed? What is the quantity imported or exported? e.If the world price of canned peaches is $2 a can and the United States engages in trade,does the United States import or export canned peaches? f.If the world price of canned peaches is $2 a can and the United States engages in trade,what is the quantity produced in the United States and what is the quantity consumed? What is the quantity imported or exported?