Exam 9: Global Markets in Action

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

If the United States imports purses,then the quantity of purses produced in the United States will ________ and the quantity of purses purchased by consumers in the United States will ________.

If the United States starts to import a good that had previously been produced in the United States,the market price of the good in the United States

Suppose the world price of a shirt is $10.If the United States imposes a tariff of $5 a shirt,then the price of a shirt in the

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

-The figure above shows the U.S.demand and U.S.supply curves for cherries.At a world price of $2 per pound once international trade occurs,the total imports of cherries to the United States from other nations equals

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

A country will export a good if it

A tariff is

-The above figure shows the U.S.market for replacement cell phone batteries.When there is no international trade,the equilibrium price is ________ per battery and when there is international trade the equilibrium price is ________ per battery.

In the 1980s,the U.S.government forced Japanese automakers to limit their exports to the United States.The union representing the autoworkers (UAW),argued that otherwise the U.S.auto industry would have contracted.The UAW's argument is the ________ argument for protection.

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

Goods and services that the United States buys from other nations are called

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

How does the United States attempt to compensate losers from lower trade restrictions?

What is the national security argument for restricting international trade? What is its flaw?

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 United States trades freely with the rest of the world. The world price of a T-shirt is $5. -In the figure above,with international trade U.S.consumers buy ________ million T-shirts per year at ________ per T-shirt.

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

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

When politicians debated the North American Free Trade Agreement (NAFTA),some told stories of U.S.workers whose jobs would be moved to Mexico.Which of the following arguments in favor of protection was being used?