Exam 9: Global Markets in Action

When a country exports a good because the world price is higher than the no-trade domestic price,domestic purchases of the good ________ and domestic production of the good ________.

When a tariff is imposed on a good,the ________ increases.

Looking at the average tariff rate in the United States since 1930,we see that

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

After a tariff is imposed on a good,the price of the good

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. -Based on the figure above,as a result of international trade,U.S.domestic production ________ million T-shirts per year.

-The above figure shows the U.S.market for flip-flops.With international trade,the United States imports ________ flip-flops.

-The United States imports television sets from Japan.The table above contains the U.S.demand and U.S.supply schedules for television sets.The world price of a television set is $600 per set. a.With no trade,what is the domestic price and quantity of television sets? b.At the world price,what is the quantity of sets demanded in the United States? c.At the world price,how many sets are produced in the United States? d.At the world price,how many sets are imported into the United States? e.What is the opportunity cost of producing the 4-millionth television set in the United States? In Japan?

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

A quota is

In 2002,President Bush imposed a tariff on imported steel.He did so in response to rent seeking by

The two main reasons why international trade is restricted is because restricting trade means that governments can ________ and because domestic businesses ________.

When Italy buys Boeing jets,the price Italy pays is ________ if it produced its own jets and the price Boeing receives is ________ than it could receive from an additional U.S.buyer.

Which of the following methods of restricting trade does NOT create a deadweight loss?

The argument that jobs are lost to free trade is

Of the following,who gains because of tariffs and why?

The argument that it is necessary to protect a new industry to enable it to grow into a mature industry that can compete in world markets is known as the

The imposition of a tariff will typically ________ government revenue and ________ domestic production of the good.

Why do governments in less-developed nations impose tariffs?

A nation will export a good if its