Exam 18: International Trade Policy

-The above figure shows the U.S.market for flip-flops. When there is no international trade, the U.S.price is ________ per flip-flop and the U.S.quantity is ________ flip-flops.

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 United States trades freely with the rest of the world.The world price of a T-shirt is $5. -In the figure above, with international trade U.S.consumers buy ________ million T-shirts per year at ________ per T-shirt.

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

Imposing a tariff on a good leads to a ________ in the price of the product and ________ in imports.

When a country imports a good, the ________ to consumers is ________ the ________ to producers.

When the United States imposes a tariff on an imported good, the

Of the following, which group is hurt by a tariff?

If the U.S.government imposes a tariff on imported steel, who else besides U.S.steel producers gains from the tariff?

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.

The imposition of a tariff will typically ________ government revenue and ________ domestic production of the good.

Which of the following is NOT a major argument for restricting international trade?

-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.

If a nation can produce a good or service at the lowest opportunity cost, then it

-The above figure shows the U.S.market for 1 carat diamonds. The free trade, the price in the United States for diamonds is equal to ________ and with the quota illustrated in the figure, the price in the United States is equal to ________.

When politicians debated the North American Free Trade Agreement (NAFTA), some told stories of U.S.workers whose jobs would be moved to Mexico.Which of the following arguments in favor of protection was being used?

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

If a nation imports a good that can be domestically produced, what happens to the quantity consumed of the good and why?

A tariff is

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

If a tariff 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 ________.