Exam 21: Building Theories to Explain Everyday Life: From Observations to Questions to Theories to Predictions

A tariff on avocadoes ______________ the price of avocadoes,_____________ consumers' surplus for avocado buyers,_______________ producers' surplus of avocado growers and __________________ tariff revenue.Because the loss to _____________ is more than the gain to ___________________,there is a net loss to society.

Exhibit 34-2 -Refer to Exhibit 34-2.The U.S.demand and supply for a good are shown.Under a policy of free trade,where imports are permitted,the world price is P_W.If there is a policy change such that imports are prohibited,the price becomes P_N,consumers' surplus equals __________ and producers' surplus equals __________.

A tariff is imposed on strawberries.The tariff will ___________ the price of strawberries in the domestic market,_____________ the quantity of strawberries imported in the domestic market,and ____________ consumers' surplus.

Producers' surplus is the difference between the price

Exhibit 34-11 -Refer to Exhibit 34-11.If the world price (P_W)is operational in the market,then U.S.imports equal

Which of the following statements is false?

The act of selling goods abroad at a price below their cost and below the price charged in the domestic market is called

A tariff is a tax on

Exhibit 34-12 -Refer to Exhibit 34-12.P_W is the price that exists in a free world market.With the imposition of a quota that limits imports to Q₄ - Q₃,consumers lose more than producers and importers gain.The result of the quota is a (net)loss represented by the area(s)

Exhibit 34-2 -Refer to Exhibit 34-2.The U.S.demand and supply for a good are shown.Under a policy of free trade,the world price is P_W.At this price,consumers' surplus equals the area of

Which of the following founders of the United States used the infant-industry argument to support trade restrictions?

Evidence indicates that tariffs and quotas are

Consumers receive more consumers' surplus when tariffs exist than when they do not exist.

Which of the following is an example of a trade restriction?

A country has a (an)__________ in the production of a good it produces at lower opportunity cost than another country.

Exhibit 34-12 -Refer to Exhibit 34-12.P_W is the price that exists in a free world market.If the U.S.imposes a quota to reduce imports to Q₄ - Q₃,price will rise to

Dumping refers to a country

In order for good X to be a likely candidate for offshoring,it must be produced with ______________ labor intensity and be a relatively ________________ good.

Exhibit 34-11 -Refer to Exhibit 34-11.A tariff raises the price in the market from P_W to P_{W + T}.As a result,U.S.domestic sales rise from __________.

Producers' surplus is the difference between the price __________ receive for a good and the __________ price for which they would have __________ the good.