Exam 9: Global Markets in Action

Which of the following is true? i.When the world price of a good is lower than the price that balances domestic supply and demand,a country gains from exporting the good. ii.Compared to a no-trade situation,in a market with imports,consumer surplus is larger. iii.Quotas raise the domestic price of imported goods.

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 government revenue from the tariff is

Which of the following is true? i.Compared to a no-trade situation,in a market with exports,consumer surplus is larger. ii.Tariffs decrease consumer surplus. iii.Trade is restricted because protection brings small losses to a large number of people and large gains to a small number of people.

Which of the following is correct? i.U.S.total surplus decreases when the United States exports a good. ii.U.S.total surplus decreases when the United States imports a good. iii.U.S.total surplus increases when the United States imports a good and when it exports a good.

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. -In the figure above,U.S.consumers buy ________ airplanes per year at ________ million per airplane.

When a nation imports 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 replacement cell phone batteries.With free trade,the United States imports ________ batteries and once the tariff illustrated in the figure is imposed,the United States imports ________ batteries.

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,producer surplus

When a country exports a good,the country's producer surplus ________,consumer surplus ________,and the country ________ from the trade.

-The above figure shows the U.S.market for wheat.When there no international trade,the U.S.price of wheat is ________ per ton and the U.S.equilibrium quantity is ________ tons.

When governments specify the maximum amount of a good that may be imported in a given period of time,they are establishing a

Of the following,which group is hurt by a tariff?

-The above figure shows the U.S.market for wheat.Without international trade,producer surplus is equal to ________.

Trade is often restricted because the

Suevania opens its doors to trade with Barvania.Barvania has a comparative advantage in the production of machinery.Hence,once trade occurs Suevania's consumers will buy ________ machinery and pay ________ before.

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

The United States imports t-shirts because

When a nation starts importing a good or service,the domestic production of the good or service

-The above figure shows the U.S.market for 1 carat diamonds.With free trade,Americans buy ________ diamonds and pay a price of ________ per diamond.

-The figure above shows the U.S.demand and U.S.supply curves for cherries.In the absence of international trade,cherry farmers would receive ________ per pound of cherries.