Exam 8: Global Markets in Action

Based on the figure above,as a result of international trade,producer surplus

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

When a nation starts importing a good or service,the domestic production of the good or service

-The above figure shows the U.S.market for flip-flops.With international trade,the United States imports ________ flip-flops.

Suppose that elimination of tariffs on agricultural products means that 1,000 farm workers lose jobs that pay an average of $20,000 per year.At the same time,because of the importation of relatively cheaper foreign vegetables,150 million consumers save $2 per year on their grocery bills. a.What is the total income lost by farm workers because of the free trade? b.What is the total dollar amount saved by all consumers combined? c.Which is greater,the lost income or the consumer savings? Do the benefits of free trade outweigh the costs in this simple example? d.Which group is most likely to become politically involved over the issue of removing the tariffs,the farm workers or the consumers? Why?

Economists argue for free trade in import markets because

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 price of a T-shirt in the United States ________,and the quantity of T-shirts bought ________.

If the government decides to impose a new tariff on orange juice from Brazil,the tariff would lead to ________ the tariff revenue collected by the U.S.government.

-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?

Which of the following is the national security argument against free trade?

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

While high-paid American workers fear competition with low-paid foreign workers,low-paid foreign workers fear competition with high-paid American workers.Why?

As a result of importing a good,domestic producers ________ the quantity produced and the price of the good ________.

"Tariffs today in the United States are much higher than in the past." Is the previous statement correct or incorrect?

Goods and services that the United States buys from other nations are called

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

-The above figure shows the U.S.market for replacement cell phone batteries.With free trade,U.S.production is equal to ________ batteries per year.When a $2 tariff is in place,U.S.production is equal to ________ batteries per year.

When a tariff supporter argues that foreign producers are selling their products for prices below the costs of production,which of the following is being used?

The country with a comparative advantage in the production of a good has a

-The table above gives the domestic demand and supply schedules for a good.Suppose the world price of the good is $40 and the government imposes a $20 per unit tariff.How much will the government collect as tariff revenue?