Exam 9: Global Markets in Action

-The above figure shows the Australian market for 1 carat diamonds. With free trade, the price in Australia for diamonds is equal to ________ and, with the quota illustrated in the figure, the price in Australia is equal to ________.

-When a country imports a good, the ________ in consumer surplus is ________ the ________ in producer surplus.

Which type of policy instrument raises the most revenue for the government?

-The figure above shows the Australian demand and Australian supply curves for cherries. At a world price of $2 per kilogram, once international trade occurs, the total exports of cherries from Australia to other nations equals

If Australia imposes a tariff on foreign chocolate, how are Australian buyers of chocolate affected?

-The figure above shows the Australian demand and Australian supply curves for cherries. At a world price of $2 per kilogram, once international trade occurs, the production of cherries in Australia will equal

Economists argue for free trade in export markets because

-The above figure shows the Australian market for wheat. With no international trade, consumer surplus is equal to ________ and producer surplus is equal to ________.

-The figure above shows the Australian demand and Australian supply curves for cherries. In the absence of international trade, how many kilograms of cherries would Australian farmers produce?

-If a nation imports a good that can be domestically produced, what happens to the quantity consumed of the good and why?

What is the dumping argument for protection from international trade?

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

Of the following, who is harmed by a tariff?

-The above figure shows the Australian market for replacement mobile phone batteries. With free international trade, Australia

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

-The above figure shows the Australian market for thongs. With international trade, Australian consumers buy ________ thongs and Australian producers produce ________ thongs.

The argument that it is necessary to protect a new industry to enable it to grow into a mature industry that can compete in world markets is known as the

When a nation exports a good or service, the nation's consumer surplus ________, its producer surplus ________, and its total surplus ________.

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

-The above figure shows the Australian market for 1 carat diamonds. With free trade, Australia produces ________ diamonds and imports ________ diamonds.