Exam 8: Global Markets in Action

If Country A opens up their corn market to trade with the rest of the world and the global price of corn is higher than the equilibrium price of corn in Country A, then Country A will ________ corn, which will ________ consumer surplus, ________ producer surplus, and ________ total surplus.

-The figure above shows the U.S. demand and U.S. supply curves for cherries. At a world price of $2 per pound once international trade occurs, the total exports of cherries from the United States to other nations equals

Of the following, ________ accounts for the largest share of imports into the United States.

The United States exports

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

When a country exports a good, the country's producer surplus ________, consumer surplus ________, and the country ________ from the trade.

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 ________.

A nation has a comparative advantage in a good when it has a

-The above figure shows the U.S. market for 1 carat diamonds. Area A + area B + area C + area D is the

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

A few years ago, as oil and gas prices continued to increase, a growing number of Americans called for the United States to become less reliant on Middle-Eastern oil. Would it make sense for the United States to try to become totally self-reliant in the production of oil? Why or why not?

Why do governments in less-developed nations impose tariffs?

Price (dollars per unit) Quantity demanded Quantity supplied (units per day) (units per day) 4 200 140 8 190 160 12 180 180 16 170 200 20 160 220 24 150 240 -The table above has the domestic supply and domestic demand schedules for a product. What is the equilibrium price with no trade? Over what range of prices will the country export the good? Over what range will it import the good? Suppose the world price is $20. What is the quantity demanded, the quantity supplied, and the amount of the good exported or imported?

-The above figure shows the U.S. market for wheat. When there is no international trade, consumer surplus is equal to ________.

International trade is definitely in the social interest if

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

When governments specify the maximum amount of a good that may be imported in a given period of time, they are establishing a

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

When a nation exports a good or service, the nation's consumer surplus ________, its producer surplus ________, and its total surplus ________.

What is rent seeking with respect to restricting international trade?