Exam 9: Global Markets in Action

-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.

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

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

In the wake of worsening relations with China,some Americans called for an increase in tariffs on Chinese products coming into America.If higher tariffs are imposed on clothing produced in China,the price of clothing in America would

Who gains from international trade?

The infant-industry argument is used by those who assert they want to

The United States imposes a tariff on foreign limes.How does the tariff affect the U.S.price of a lime and the production of limes in the United States?

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

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

Economics demonstrates that opening up unrestricted free international trade is beneficial to all nations.However,are there any losers from such a policy change?

Relative to free trade,domestic consumers of a good are ________ off with a tariff because of the ________.

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 United States trades freely with the rest of the world. The world price of a T-shirt is $5. -Based on the figure above,as a result of international trade,producer surplus

Dumping is defined as the situation in which

When a country exports a good because the world price is higher than the no-trade domestic price,domestic purchases of the good ________ and domestic production of the good ________.

If supporters of restrictions on imports argue that protection is needed to preserve a strategic industry,which of the following is being used?

Most t-shirts bought by Americans are made in Asia.U.S.consumers of t-shirts buy these t-shirts because

-The above figure shows the U.S.market for flip-flops.When there is no international trade,the U.S.price is ________ per flip-flop and the U.S.quantity is ________ flip-flops.

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

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