Exam 20: International Trade

George is a gift giver and Roger is a gift recipient.George has Roger in his utility function,but Roger does not have George in his utility function.Roger may try to get George to __________________ George's efficient number of gifts to (give).

If people value clean air over dirty air,and if the air in city A is cleaner than the air in city B (by a wide margin),then we would expect that ____________________,all else equal between the two cities.

The efficient number of gifts that a gift-giver wants to give is the number at which the marginal benefits of giving a gift are__________________the marginal costs of giving a gift.

People sometimes act differently in different settings.An economist is likely to explain this by saying

There is no difference between building a theory and evaluating a theory.

Which of the following is not a prediction of the theory on baseball caps and cheating?

The ______________ the gap between the tuition a college student pays and the equilibrium tuition for that college,the _____________ likely the student's instructors will be on time and attentive during their office hours.

For economic imperialists,economics is more of a method of analysis than a specific field of study.

Explain what it means to say that a theory is falsifiable or refutable? Give a specific example to help support your answer.

Which of the following can a homebuyer pay for indirectly when purchasing a home?

Which of the following statements is true?

One theory discussed in the textbook is that there is a direct relationship between the opportunity cost of having children and the number of children a woman will have.

Those who say that economics is becoming an increasingly imperialist social science are suggesting that economics is

In the burglary crime model presented in the textbook,as the anguish cost of committing a burglary rises,the prediction is that

Scientists are interested in finding out when their theories are wrong,as well as when their theories are right.

The gap between the higher equilibrium tuition and lower student tuition is $4,000 at university A and $10,000 at university B.It follows that

The bigger the shortage of a good or service,the ____________ the seller of the good or service will be to an individual customer _________.(We are assuming here that the shortage cannot,for legal reasons,be alleviated through a rise in price.)

Smith drives his car numerous places.Sometimes he drives his car around his residential neighborhood and sometimes he drives it on the highway.Occasionally,Smith gets peeved with the way other people drive and makes a rude gesture to them.Based on one of the theories discussed in the textbook,he is

Smith sends her children to a private school on the other side of town.Tuition per student per year is $15,000.Jones sends her children to a public school on her side of town.Tuition per student per year is $0.Most people seem to think that the private school and public school are equivalent when it comes to educating students.According to a theory discussed in the textbook,

Suppose that the equation that represents the expected benefits of burglary for a given prospective criminal is as follows: EB = Ps x Loot The criminal's cost equation is as follows: EC = [Pp x (I + F)] + AC Where: EB is the expected benefits of burglary Ps is the probability of successfully burglarizing a house Loot is the dollar take from the burglary EC is the expected costs of burglary Pp is the probability of imprisonment I is the income the criminal gives up if caught and imprisoned F is the dollar value the criminal puts on freedom AC is the anguish cost of committing a burglary -Refer to Situation 33-1.If the prospective criminal sets the following values: Ps = 65 percent Loot = $20,000 Pp = 20 percent I = $30,000 F = $15,000 AC = $5,000 The prospective criminal's expected benefit from committing the burglary is ______________ and his expected cost of committing the burglary is _______________.Economic theory tells us that under these circumstances,the prospective criminal ______________ commit the burglary.