Exam 9: Global Markets in Action

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 deadweight loss from the tariff is

The United States

Which of the following parties benefits from an import quota but not from a tariff?

If you buy a DVD player produced in Japan,a

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

A few years ago,as oil and gas prices continued to increase,a growing number of Americans called for the United States to become less reliant on Middle-Eastern oil.Would it make sense for the United States to try to become totally self-reliant in the production of oil? Why or why not?

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,U.S.domestic production ________ airplanes per year.

What is dumping?

How do imports affect buyers' consumer surplus?

-The above figure shows the U.S.market for 1 carat diamonds.The free trade,the price in the United States for diamonds is equal to ________ and with the quota illustrated in the figure,the price in the United States is equal to ________.

Goods and services that the United States sells to other nations are called

U.S.tariffs on Canadian lumber have led to ________ production of lumber within the United States.

If an import quota is imposed on imports of shrimp into the United States,U.S.consumer surplus from shrimp will ________ and U.S.total surplus from shrimp will ________.

-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 production of cherries in the United States will equal

A tariff is a tax

A country exports a good if

-The above figure shows the U.S.market for 1 carat diamonds.With free trade,the United States produces ________ diamonds and imports ________ diamonds.

Goods and services that we buy from firms in other countries are called our

Of the following,who gains from a tariff?

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