Exam 9: Global Markets in Action

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

Economists argue for free trade in import markets because

-A quota is a

If you buy a DVD player produced in Japan, a

A tax on a good that is imposed by the importing country is called a

If the United States imports purses, then the quantity of purses produced in the United States will ________ and the quantity of purses purchased by consumers in the United States will ________.

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

When a nation imports a good, its ________ surplus decreases and its ________ surplus increases.

Which of the following is true? I∙Comparative advantage drives international trade. Ii∙Compared to a no-trade situation, in a market with imports, producer surplus is larger. Iii∙Tariffs lower the domestic price of imported goods.

-The above figure shows the U.S.market for replacement cell phone batteries.Suppose the U.S.government imposes the tariff illustrated in the figure.The tariff is equal to ________ and the price U.S.consumers pay ________ compared to the price paid when there was free trade.

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

________ occurs when a foreign firm sells its exports at a lower price than its cost of production.

After NAFTA was signed, the United States allowed more tomatoes to be imported from Mexico.What happened to the price of tomatoes in the United States when the United States allowed more tomatoes to be imported?

If the United States negotiates a voluntary export restraint with international sugar producing nations, then

How do imports affect buyers' consumer surplus?

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.

A country exports a good if

Briefly define a tariff and a quota.Do any of these methods restrict trade without harming domestic consumers?

-The above figure shows the domestic supply of and domestic demand for an imported good.The world price is $15 per unit. a∙At the world price of $15 per unit, what is the domestic consumption and domestic production? b∙At the world price of $15 per unit, what is the quantity imported? c∙If the government imposes a tariff of $5 per unit, what is the domestic consumption and domestic production? d∙With the $5 per unit tariff, what is the quantity imported? e∙How much revenue does the government collect with a tariff of $5 per unit?

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.