Exam 9: Global Markets in Action

If the United States exports planes to Brazil and imports ethanol from Brazil, the price received by U.S. producers of planes ________, and the price received by Brazilian producers of ethanol ________.

When a nation starts importing a good or service, the domestic production of the good or service

-If Australia starts to import a good that had previously been produced in Australia, the market price of the good in Australia

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

-A country exports a good if

-The above figure shows the Australian market for 1 carat diamonds. Area A + area B + area C + area D is the

Suppose the world price of a shirt is $10. If Australia imposes a tariff of $5 a shirt, then the price of a shirt in

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

-The above figure shows the Australian market for thongs. When there is no international trade, the Australian price is ________ per thong and the Australian quantity is ________ thongs.

Suppose the world price of widgets is $5 each. If a widget-importing country imposed a $2 per widget tariff, what price would that country's consumers pay for widgets?

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

What is rent seeking with respect to restricting international trade?

-Goods and services that Australia sells to other nations are called

The imposition of a tariff will typically ________ government revenue and ________ domestic production of the good.

-All of the following statements about Australia are true EXCEPT

The two main reasons why international trade is restricted is because restricting trade means that governments can ________ and because domestic businesses ________.

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

Since the early 2000s, the average Australian tariff rate has been

-International trade is definitely in the social interest if

-The above figure shows the Australian market for wheat. With international trade, Australia exports ________ of wheat.