Exam 8: Global Markets in Action

Currently, the United States has a 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 quota was removed? What would happen to U.S. consumption and U.S. production of sugar?

8.5 Chapter Figures 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.

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

Suppose the world price of a shirt is $10. If the United States imposes a tariff of $5 a shirt, then the price of a shirt in the

Since the mid-1970s, the average U.S. tariff rate is

Of the following, who gains from a tariff?

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

Who gains from imports? How do they gain? Who loses? How do they lose? Does the overall economy gain or lose from imports?

A country exports the goods

Price (dollars per unit) Quantity demanded Quantity supplied (units per day) (units per day) 2 20 14 4 19 16 6 18 18 8 17 20 10 16 22 12 15 24 -According to the above table, the country will import the good if the world price is less than ________ and will export the good if the world price is more than ________.

-The above figure shows the U.S. market for flip-flops. With no international trade, the price in the United States for flip-flops is ________. With international trade, the price in the United States for flip-flops is ________.

As a result of U.S. tariffs on fishnets produced in other nations, the quantity of fishnets purchased in the United States has

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, in a market with imports, consumer surplus is larger. Iii. Quotas raise the domestic price of imported goods.

Suppose the United States subsidizes domestic chicken production and then sells surpluses on the world market at a price below the cost of production. In foreign countries, the argument that would made to restrict chicken trade with the United States would be 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. -In the figure above, the United States ________ airplanes per year.

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

-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 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?

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 ________.