Exam 18: International Trade Policy

Of the following, who gains because of tariffs and why?

A major reason why it is difficult to lower the barriers to free trade is

Currently, the United States has an import quota on the amount of sugar that is allowed to be imported into the United States.What would happen to the price of sugar in the United States if the import quota was removed? What would happen to U.S.consumption and U.S.production of sugar?

What is "rent seeking"? How does it apply to restricting imports?

One of the major reasons why the United States exports jet airplanes is because Boeing faces ________ opportunity cost than firms in other nations in the production of such aircraft.

A quota is

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

If the United States exports planes to Brazil and imports ethanol from Brazil, the price received by U.S.producers of planes ________ and the price received by Brazilian producers of ethanol ________.

When the United States imports goods from the rest of the world, which of the following parties is harmed? i. domestic producers of the good ii. domestic consumers of the good iii. foreign producers of the good

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

When a tariff supporter argues that foreign producers are selling their products for prices below the costs of production, which of the following is being used?

-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.

Which type of policy raises the most revenue for the government?

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 government revenue from the tariff is

-The above figure shows the U.S.market for wheat. With no international trade, the price of wheat in the United States is ________ per ton. With international trade, the price of wheat in the United States is ________ per ton.

What is an effective counter against the argument that international trade should be restricted to protect domestic jobs?

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?

What is the best hope for reducing environmental pollution in less-developed nations?

If you buy a DVD player produced in Japan, a

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