Exam 18: International Trade Policy

Which of the following is true? i.Comparative advantage drives international trade. ii.Compared to a no-trade situation, imports make domestic producers better off. iii.Tariffs lower the domestic price of imported goods.

The typical relationship between a worker's productivity and the worker's wage rate is

The argument that jobs are lost to free trade is

When a tariff is imposed on a good, the ________ increases.

If the United States imposes a tariff on a good, then

Which of the following is true? i.When the world price of a good is lower than the price that balances domestic supply and demand, a country gains from exporting the good. ii.Compared to a no-trade situation, imports make consumers better off. iii.Quotas raise the domestic price of imported goods.

If the United States starts to import a good that had previously been produced in the United States, the market price of the good in the United States

How can a domestic producer determine whether or not it has a comparative advantage in the production of a good or service?

Most t-shirts bought by Americans are made in Asia.U.S.consumers of t-shirts buy these t-shirts because

-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?

The fundamental force that drives trade between nations is

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

When a nation exports a good or service in which it has a comparative advantage, employment in that industry

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 quantity of T-shirts produced in the United States ________, and the quantity of T-shirts imported ________.

The United States imports t-shirts because

If the United States imposed a quota on the amount of salmon imported from Chile, the result would be ________ salmon prices in the United States and ________ in the quantity of salmon demanded in the United States.

When a good is imported, the domestic production of it ________ and the domestic consumption of it ________.

Trade is often restricted because the

-The above figure shows the U.S.market for wheat. When there no international trade, the U.S.price of wheat is ________ per ton and the U.S.equilibrium quantity is ________ tons.

What is a major reason international trade is restricted?