Exam 9: Global Markets in Action

If the world price of a good is below the no-trade domestic price,a country

Imposing a tariff on a good leads to a ________ in the price of the product and ________ in imports.

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

After a tariff is imposed,consumers must pay a price equal to the

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

If Country A opens up their corn market to trade with the rest of the world and the global price of corn is lower than the equilibrium price of corn in Country A,then Country A will ________ corn,which will ________ consumer surplus,________ producer surplus,and ________ total surplus.

If the U.S.government imposes a tariff on imported steel,who else besides U.S.steel producers gains from the tariff?

What is an effective counter against the argument that international trade should be restricted to protect domestic jobs?

A tax on a good that is imposed by the importing country is called a

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,U.S.consumers buy ________ airplanes per year at ________ million per airplane.

-The above figure shows the U.S.market for flip-flops.With international trade,U.S.consumers buy ________ flip-flops and U.S.producers produce ________ flip-flops.

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

Which of the following is NOT a major argument for restricting international trade?

A few years ago,as oil and gas prices continued to increase,a growing number of Americans called for the United States to become less reliant on Middle-Eastern oil.Would it make sense for the United States to try to become totally self-reliant in the production of oil? Why or why not?

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

-The figure above shows the U.S.demand and U.S.supply curves for cherries.In the absence of international trade,cherry farmers would receive ________ per pound of cherries.

The fundamental force that drives trade between nations is

When protection is encouraged to protect a growing domestic industry; which of the following is being used?

Which of the following is true? i.Compared to a no-trade situation,in a market with exports,consumer surplus is larger. ii.Tariffs decrease consumer surplus. iii.Trade is restricted because protection brings small losses to a large number of people and large gains to a small number of people.

If an import quota is imposed on imports of shrimp into the United States,U.S.producer surplus from shrimp will ________ and U.S.total surplus from shrimp will ________.