Exam 9: Global Markets in Action

Price (dollars per unit 2 4 6 8 10 12 Quantity demanded (units per day) 20 19 18 17 16 15 Quantity supplied (units per day) 14 16 18 20 22 24 -The table above has the domestic demand and domestic supply schedules for a good.If the world price of the good is $10 and international trade occurs,then according to the table

If the United States imports purses,then the quantity of purses produced in the United States will ________ and the quantity of purses purchased by consumers in the United States will ________.

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

The figure above shows the U.S. market for airplanes, 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 an airplane is $150 million. -Based on the figure above,as a result of international trade,consumer surplus

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

The figure above shows the U.S. market for airplanes, 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 an airplane is $150 million. -In the figure above,the United States ________ airplanes per year.

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.

When politicians debated the North American Free Trade Agreement (NAFTA),some told stories of U.S.workers whose jobs would be moved to Mexico.Which of the following arguments in favor of protection was being used?

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

-The above figure shows the U.S.market for wheat.With international trade,the United States exports ________ of wheat.

-In the figure above,with international trade the United States ________ million T-shirts per year.

How do imports affect buyers' consumer surplus?

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

During the past 70 years,the peak average tariff rate in the United States stemmed from the

-The above figure shows the U.S.market for chocolate.With no international trade,consumer surplus is equal to

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

Which of the following parties benefits from an import quota but not from a tariff?

Trade is often restricted because the

Of the following,________ account(s)for the largest share of imports into the United States.

-The above figure shows the U.S.market for 1 carat diamonds.With free trade,Americans buy ________ diamonds and pay a price of ________ per diamond.