Exam 9: 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 lower than the equilibrium price of corn in Country A,then Country A will ________ corn,which will ________ consumer surplus,________ producer surplus,and ________ total surplus.

How can a nation and its producers determine whether or not it has a comparative advantage in producing a particular good or service?

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

-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

If the United States negotiates a voluntary export restraint with international sugar producing nations,then

We find that the world price of sugar is 20 cents a pound,the U.S.does not trade internationally,and the U.S.equilibrium price of sugar is 30 cents a pound.If the U.S.begins to trade internationally,the price of sugar in the U.S.________ to the world price and U.S.consumers buy ________ sugar.

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

The average U.S.tariff was highest in the

When a tariff is imposed on a good,domestic consumers of the good ________ and domestic producers of the good ________.

Of the following,who gains from a tariff?

When a nation exports a good or service in which it has a comparative advantage,production of the good or service

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

If the United States imposed a quota on the amount of salmon imported from Chile,the result would be ________ salmon prices in the United States and ________ in the quantity of salmon demanded in the United States.

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.Suppose the world price of cherries is $2 per pound.At this price,U.S.consumption of cherries will equal

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

-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?

Suevania opens its doors to trade with Barvania.Barvania has a comparative advantage in the production of machinery.Hence,once trade occurs Suevania's consumers will buy ________ machinery and pay ________ before.

Which of the following is true? i.Comparative advantage drives international trade. ii.Compared to a no-trade situation,in a market with imports,producer surplus is larger. iii.Tariffs lower the domestic price of imported goods.

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