Exam 9: Global Markets in Action

The fundamental force that drives trade between nations is

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 ________.

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

Imports ________ society's total surplus because of the ________ in price and ________ in consumption.

-The United States imports cheese from a variety of countries.The table above gives the domestic supply of,and demand for,cheese in the United States.The world price of cheese is $12 per pound,and trade is unrestricted. a.How many pounds of cheese are consumed in the United States? b.How many pounds of cheese are produced in the United States? c.How many pounds of cheese are imported into the United States? If a $3 per pound tariff is imposed, d.How many pounds of cheese are consumed in the United States? e.How many pounds of cheese are produced in the United States? f.How many pounds of cheese are imported into the United States? g.How much will the U.S.government collect in tariff revenue? h.Who benefits from the tariff? Who loses?

A tax on a good that is imposed when it is imported is called

-The table above has the domestic demand and domestic supply schedules for a good.According to the table,the no-trade price of the good is

A tariff is a tax

When a tariff is imposed on a good,the ________ increases.

What is dumping?

All of the following statements about the United States are true EXCEPT:

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

One of the major reasons why the United States exports jet airplanes is because Boeing faces ________ opportunity cost compared with firms in other nations in the production of such aircraft.

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

Airlines in other countries buy airplanes from Boeing because

Which of the following groups gain from international trade? i.producers of exported goods ii.domestic consumers of imported goods iii.workers in exporting firms

________ occurs when a foreign firm sells its exports at a lower price than its cost of production.

The United States exports

During the 1980s,Harley-Davidson,the American motorcycle maker asked Congress for tariff protection from large motorcycles imported from Japan.Harley-Davidson argued that their company needed protection so the company could reorganize and,after some time had passed,could become more competitive.Harley-Davidson's argument is similar to the ________ argument for protection.

Assume that the state of Missouri decided to place a tariff on every product produced outside the state in an effort to increase the state's revenue and increase employment in the state.If Missouri did so,