Exam 9: Global Markets in Action

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,the United States ________ airplanes per year.

During the 1980s,Harley-Davidson,the American motorcycle maker asked Congress for tariff protection from large motorcycles imported from Japan.Harley-Davidson argued that their company needed protection so the company could reorganize and,after some time had passed,could become more competitive.Harley-Davidson's argument is similar to the ________ argument for protection.

Economics demonstrates that opening up unrestricted free international trade is beneficial to all nations.However,are there any losers from such a policy change?

Most t-shirts bought by Americans are made in Asia.U.S.consumers of t-shirts buy these t-shirts because

How can a nation and its producers determine whether or not it has a comparative advantage in producing a particular good or service?

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

If the United States imposes a tariff on foreign chocolate,how are U.S.buyers of chocolate affected?

Which of the following is the national security argument against free trade?

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

Most t-shirts bought by Americans are made in Asia.As a result of free trade,the production of t-shirts in America has

-The above figure shows the U.S.market for wheat.With international trade,the gain in total surplus is equal to ________.

After a tariff is imposed,consumers must pay a price equal to the

International trade is definitely in the social interest if

With no international trade,the U.S.price of wheat is lower than the world price of wheat.This indicates that the United States ________ a comparative advantage in the production of wheat and with international trade,the United States will ________ wheat.

What is the dumping argument for protection from international trade?

Country A imports 1,000 cars per month.After imposing a $50 per car tariff,imports fall to 800 cars per month.How much does Country A's government collect in tariff revenue?

-The above figure shows the U.S.market for flip-flops.With international trade,the equilibrium price in the United States is ________ and the United States ________ flip-flops.

When a nation imports a good,its consumer surplus ________,and its producer surplus ________.

The imposition of tariffs on Korean steel has led to ________ in imports of Korean steel to the United States and ________ the price of steel in the United States.

The country with a comparative advantage in the production of a good has a