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

Global technologies,such as electronics,have made up a significant portion of the recent wave of manufacturing offshoring.

Which of the following is a major import for the United States?

As discussed in the textbook,various studies in the past have shown that there are ________________ degrees of separation between any two people in the world.Social media would be expected to _______________ the number of degrees of separation,making the world ________________.

Consumers receive more consumers' surplus when __________.

Tariffs and quotas are often imposed when a government is more responsive to __________ interests,and the benefits of those trade restrictions are often __________.

Major U.S.exports include automobiles and aircraft.

Exhibit 34-8 -Refer to Exhibit 34-8.Assume that the current price of sugar in the United States is $300 per ton (which includes a $100 per ton tariff on sugar imports).The government collects tariff revenues on sugar imports in the amount of __________ million.

Exhibit 34-3 -Refer to Exhibit 34-3.The world price is P_W.At this price,Americans purchase Q₁ from U.S.producers and import the quantity __________ from foreign producers.

Which of the following statements about a tariff and a quota is true?

On an aggregate level,free trade produces a net __________ and restricted trade produces a net __________.

Explain why the government is often more responsive to producer interests than to consumer interests when it comes to the imposition of tariffs and quotas.

Countries that engage in specialization and trade can consume at a level beyond their production possibilities frontier.

A quota is

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,what quantity of this good do U.S.consumers buy from U.S.producers and what quantity do they import from foreign producers?

"New industries should be protected from older established foreign competitors until they are mature enough to compete on an equal basis." This argument for trade restrictions is called the __________ argument.

A French firm sells its good at a lower price in England than in France.It follows that the French firm is necessarily

Company Z is a U.S.company that has just entered the market for a given good and is the first in this country to produce that good.The good is already being produced in many foreign countries is exported to the United States.If company Z wants to restrict this foreign competition,it will most likely use which of the following arguments?

Exhibit 34-3 -Refer to Exhibit 34-3.The world price is P_W.If a tariff is imposed,the price rises to P_W + T.Because of the tariff,government collects tariff revenues equal to the area of

When countries engage in specialization and international trade,every individual person in those countries will gain.

Suppose that a tariff is imposed on imported cheese.This will have the effect of __________ the quantity consumed of cheese,__________ consumers' surplus,and __________ the government's tariff revenues.