Exam 9: Global Markets in Action

The United States imports t-shirts from Asia.As a result,U.S.consumers pay ________ otherwise and Asian producers receive ________ otherwise.

Suppose that elimination of tariffs on agricultural products means that 1,000 farm workers lose jobs that pay an average of $20,000 per year.At the same time,because of the importation of relatively cheaper foreign vegetables,150 million consumers save $2 per year on their grocery bills. a.What is the total income lost by farm workers because of the free trade? b.What is the total dollar amount saved by all consumers combined? c.Which is greater,the lost income or the consumer savings? Do the benefits of free trade outweigh the costs in this simple example? d.Which group is most likely to become politically involved over the issue of removing the tariffs,the farm workers or the consumers? Why?

International trade decreases the demand for workers in domestic industries that

Why are the losers from free international trade not fully compensated for their losses?

What is a major reason international trade is restricted?

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

A nation has a comparative advantage in a good when it has a

The United States exports

The ________ are hurt by importing a good.

How do exports affect buyers' consumer surplus?

Explain how governments restrict international trade and who benefits as well as who loses from the restrictions.

A flawed argument for protection from foreign trade is that i.tariffs save domestic jobs. ii.tariffs protect the national culture. iii.quotas bring about diversity and stability.

Which of the following is an argument that is used for protection from free trade? i.the national security argument ii.the infant-industry argument iii.the dumping argument

Which of the following chain of events occurs when a tariff is imposed on a good?

As a result of importing a good,domestic producers ________ the quantity produced and 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 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 as a result of the tariff,the price of a T-shirt in the United States ________,and the quantity of T-shirts bought ________.

As a result of U.S.tariffs imposed on wool from New Zealand,the quantity of this wool that is imported has

A tax on a good that is imposed when it is imported is called

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

-The figure above shows the U.S.demand and U.S.supply curves for cherries.In the absence of international trade,how many pounds of cherries would U.S.farmers produce?