Exam 8: Global Markets in Action

In the 1980s,the U.S.government forced Japanese automakers to limit their exports to the United States.The union representing the autoworkers (UAW),argued that otherwise the U.S.auto industry would have contracted.The UAW's argument is the ________ argument for protection.

The fundamental force that generates international trade is

Based on the figure above,as a result of international trade,U.S.domestic production ________ million T-shirts per year.

A country exports a good if

-The above figure shows the U.S.market for wheat.With international trade,the gain in total surplus is equal to ________.

Economists argue for free trade in export markets because

-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.

How does a tariff affect the domestic price of the import,the domestic consumption,the domestic production,and the quantity imported?

After a tariff is imposed,consumers must pay a price equal to the

When a nation imports a good,its ________ surplus decreases and its ________ surplus increases.

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

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

In the figure above,U.S.consumers buy ________ airplanes per year at ________ million per airplane.

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

The difference between a tariff and a quota is that the revenue from the tariff goes to the

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

When a nation exports a good or service,employment in that industry

International trade decreases the demand for workers in domestic industries that

When a nation exports a good,its ________ surplus increases and its ________ surplus increases.

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 U.S.net ________ surplus from the tariff is ________.