Exam 9: Global Markets in Action

How do exports affect buyers' consumer surplus?

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

The United States exports a good if its no-trade U.S.price is ________ its world price.With international trade,U.S.production of the good ________ compared to the level of no-trade production.

Who gains from exports? How do they gain? Who loses? How do they lose? Does the overall economy gain or lose from exports?

-The above figure shows the U.S.market for replacement cell phone batteries.Area A + area E is the

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 ________.

If the United States imposes a tariff on foreign chocolate,how are U.S.producers of chocolate affected?

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

The country with a comparative advantage in the production of a good has a

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 world price of a T-shirt is $5. The U.S. government imposes a $2 per unit tariff on imported T-shirts. -The figure above shows that as a result of the tariff,the quantity of T-shirts produced in the United States ________,and the quantity of T-shirts imported ________.

-The above figure shows the U.S.market for flip-flops.With international trade,the United States imports ________ flip-flops.

Why are the losers from free international trade not fully compensated for their losses?

Once international trade occurs,a country with a comparative advantage in the production of a good will ________ production of the good and ________.

When a nation imports a good,its consumer surplus ________,and its producer surplus ________.

In the 1980s,the U.S.government forced Japanese automakers to limit their exports to the United States.The union representing the autoworkers (UAW),argued that otherwise the U.S.auto industry would have contracted.The UAW's argument is the ________ argument for protection.

-The above figure shows the U.S.market for replacement cell phone batteries.Area C is the

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

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

With no international trade,the U.S.price of wheat is lower than the world price of wheat.This indicates that the United States ________ a comparative advantage in the production of wheat and with international trade,the United States will ________ wheat.

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. -In the figure above,with international trade U.S.consumers buy ________ million T-shirts per year at ________ per T-shirt.