Exam 8: Global Markets in Action

How does a quota affect the consumer surplus and the producer surplus from the imported good? Is the overall economy helped or harmed by quotas? Briefly explain your answers.

As a result of importing a good,domestic consumers ________ the quantity consumed and the price of the good ________.

-The above figure shows the U.S.market for replacement cell phone batteries.With free trade,the United States imports ________ batteries and once the tariff illustrated in the figure is imposed,the United States imports ________ batteries.

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

Imports ________ consumer surplus,________ producer surplus,and ________ total surplus.

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

A quota ________ a deadweight loss and a tariff ________ a deadweight loss.

A nation will import a good if its no-trade,domestic

Goods and services that we buy from firms in other countries are called our

International trade is definitely in the social interest if

How do exports affect sellers' producer surplus?

Of the following,who gains with a tariff?

If the United States imposes a tariff on a good,then

In the figure above,with international trade the United States ________ million T-shirts per year.

How do imports affect buyers' consumer surplus?

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

-The above figure shows the U.S.market for 1 carat diamonds.With free trade,the United States produces ________ diamonds and imports ________ diamonds.

Comparing developed and developing nations in their use of tariffs,we see that

Of the following,who gains with a quota?

If an import quota 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 ________.