Exam 8: Global Markets in Action

-The above figure shows the U.S.market for 1 carat diamonds.With free trade,the price in the United States for diamonds is equal to ________ and with the quota illustrated in the figure,the price in the United States is equal to ________.

-Merck,an American pharmaceutical company,produces a vaccination that is used against chicken pox.The table shows the domestic demand for,and supply of,this medication,measured in thousands of doses per day.The world price of this medicine is $24 per dose. a.With no trade,what is the U.S.price and quantity of the vaccine? b.At the world price,how many doses are demanded in the United States? c.At the world price,how many doses are produced in the United States? d.At the world price,how many doses are exported?

If a tariff is imposed on imports of shrimp into the United States,U.S.consumer surplus from shrimp will ________ and U.S.total surplus from shrimp will ________.

-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

Briefly define a tariff and a quota.Do any of these methods restrict trade without harming domestic consumers?

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 ________.

If you buy a DVD player produced in Japan,a

Because wage rates are so low in Africa,why don't Microsoft,Cisco and other major corporations close down their American operations and move to Africa?

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

What is the infant-industry argument for protection from international trade?

In the figure above,the United States ________ airplanes per year.

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

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 ________.

What is rent seeking with respect to restricting international trade?

The world price of steel is $100 a ton.Before international trade,the price of steel in India is $60 a ton.If India begins trading internationally,the price of steel in India ________ and steel mills in India ________ the quantity they produce.

How do imports affect sellers' producer surplus?

-The above figure shows the U.S.market for replacement cell phone batteries.Area C is the

Which of the following is true? I.Compared to a no-trade situation,in a market with exports,consumer surplus is larger. Ii.Tariffs decrease consumer surplus. Iii.Trade is restricted because protection brings small losses to a large number of people and large gains to a small number of people.

During the past 70 years,the peak average tariff rate in the United States stemmed from the

A nation will export a good if its