Global Competition for Products and Services and Jobs

Which of the following could lead to domestic wages falling in a particular industry?

A drop in domestic demand of the good

Click on the letter indicating the producer surplus in this free trade scenario.

C

Which of the following is true when trade is allowed?

Consumers benefit less from a tariff but more than they do without trade. Consumers benefit the most from free trade. Producers benefit more from a tariff but less than when there is no trade. Producers benefit the least from free trade.

Which type of worker would be in the most danger of being replaced by a worker in another country?

Factory worker Call center worker

In which industry would there tend to be more high-skilled workers?

Information technology

What is a producer surplus?

It is the area above the supply curve and below the equilibrium price.

What is consumer surplus?

It is the benefit consumers get from paying the equilibrium price when they are willing to pay more. It is the area under the demand curve and above the market price. It is the area under the demand curve and above the equilibrium price.

Which type of worker would be in the least danger of being replaced by a worker in another country?

Landscaper Retail clerk at a store Hotel maid

Which of the following is a goal of increasing regulations?

Make production more expensive Raise production standards

Which of the following could lead to domestic wages rising in a particular industry?

More expensive foreign labor in that industry Decreased imports in that industry An increase in domestic demand of the good Increased exports in that industry

Click on the supply curve that represents the domestic supply and the import quota. Click on the correct letter.

S'

What happens when a tariff is installed into the market?

There would be a rise in the market price above the world price. Consumer surplus would become smaller than the free trade consumer surplus.

Which of the following describes the purpose of a tariff?

To raise the price of a good above the lower world price To allow domestic businesses to supply more to the market To make domestic products more competitive with foreign imports

Which of the following is a type of non-tariff barrier?

Voluntary Export Restraint Increased regulation Import quota

The __________ is the organization that deals with international trade.

WTO

This market shows the installation of a tariff. The difference between which two quantities shows the amount of imports? Click on two things to get the correct answer.

X Y

Click on the area that represents the amount of added revenue a domestic company earns as a result of the import quota.

d

An export subsidy will __________.

encourage exports

A VER is a restraint conducted by __________.

the exporting nation