Exam 9: Global Markets in Action

If a tariff 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 above figure shows the U.S.market for 1 carat diamonds.Area A + area B + area C + area D is the

If the world price of a good is below the no-trade domestic price, a country

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

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 above figure shows the U.S.market for replacement cell phone batteries.Area B + area D is the

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, consumer surplus

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

The fundamental force that drives trade between nations is

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

When a tariff is imposed on a good, domestic consumers of the good ________ and domestic producers of the good ________.

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

-The above figure shows the U.S.market for replacement cell phone batteries.Area A + area E is the

-The above figure shows the U.S.market for replacement cell phone batteries.Area C is the

Once international trade occurs, a country with a comparative advantage in the production of a good will ________ production of the good and ________.

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

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.

The United States exports

The United States imposes a tariff on foreign limes.How does the tariff affect the U.S.price of a lime and the production of limes in the United States?

In the 1950s, crude oil and natural gas imports were restricted to keep the domestic industries viable in case of a war.The rationale for this protection is the ________ argument for protection.