AP®︎ Microeconomics: Topic 2.9 Flashcards

A situation where a country does not trade internationally and relies only on domestic markets.

The price of a good on the international market, which domestic buyers and sellers take as given.

The amount bought from foreign producers, equal to domestic quantity demanded minus domestic quantity supplied.

Government income from a tariff, equal to the tariff per unit times the number of imports.

The lost total surplus caused when tariffs or quotas reduce mutually beneficial trades.

Domestic price moves to world price, changing surpluses and creating imports or exports.

A tax on imports that raises domestic price, reduces imports, and creates government revenue.

A limit on imports that raises domestic price, reduces consumption, and increases domestic production.

The amount sold abroad, equal to domestic quantity supplied minus quantity demanded.