Question 1

If a U.S.company operates within a competitive environment and chooses to offshore part of its production process,the resulting change in the firm's costs should shift the ______________ curve for its product ___________________,thus _____________ the price of the product being produced.
A)supply;leftward;lowering
B)supply;rightward;raising
C)demand rightward;raising
D)supply;rightward;lowering

Accepted Answer

Offshoring part of the production process should lead to a decrease in costs for the U.S. company, which would result in a rightward shift of the supply curve. This would lead to a lowering of the price of the product being produced, as the company seeks to maintain its competitive position within the market.

Question 2

Exhibit 34-11 -Refer to Exhibit 34-11.P_W is the price that exists in the market before a tariff is imposed and P_{W + T} is the price that exists in the market after a tariff is imposed.Tariff revenues equal the area A)DBCG. B)EBCF. C)CFG. D)BCGE. E)DBCF.

Accepted Answer

Tariff revenues are represented by the area between the price before the tariff (P_W) and the price after the tariff (P_{W + T}) over the quantity of imports after the tariff is imposed. This area is EBCF, capturing the extra cost per unit imported (the height of the rectangle) times the number of units imported (the width of the rectangle).

Question 3

Exhibit 34-12 -Refer to Exhibit 34-12.P_W is the price that exists in a free world market.A quota is imposed and imports are Q₄ - Q₃.Importers gain revenues equal to the area __________. A)GKL + HIJ B)GCE C)GHJK D)GFEH E)none of the above

Accepted Answer

The answer of Exhibit 34-12 -Refer to Exhibit 34-12.P_W is...

Question 4

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.
A)raises;increases;decreases;generates;producers;consumers and government
B)lowers;increases;decreases;does not generate;producers and government;consumers
C)raises;increases;decreases;does not generate;producers and government;consumers
D)raises;decreases;increases;generates;consumers;producers and government

Accepted Answer

A tariff on avocadoes raises the price of avocadoes, decreases consumers' surplus for avocado buyers, increases producers' surplus of avocado growers, and generates tariff revenue. The loss to consumers is more than the gain to producers and government, leading to a net loss to society.

Question 5

The act of selling goods abroad at a price below their cost and below the price charged in the domestic market is called
A)dumping.
B)slumping.
C)export manipulation.
D)constraining.
E)none of the above

Accepted Answer

This practice of selling goods below their cost and below the price charged in the domestic market is called dumping. It is often done to gain a foothold in a new market or to drive out domestic competitors. It is considered to be a form of unfair trade practice and is regulated by international trade laws.

Question 6

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 A)P₁. B)P₂. C)P₃. D)P₄. E)There is not enough information to answer the question.

Accepted Answer

When a quota is imposed that reduces imports, it restricts the supply of the good in the domestic market, leading to an increase in price. The price will rise to the level where the quantity supplied domestically plus the quota amount equals the quantity demanded, which is indicated by P₁ in this context.

Question 7

Exhibit 34-11 -Refer to Exhibit 34-11.If the world price (P_W)is operational in the market,then U.S.imports equal A)Q₄ - Q₂. B)Q₂ - Q₃. C)Q₄ - Q₃. D)Q₂ - Q₁. E)Q₃ - Q₁.

Accepted Answer

The answer of Exhibit 34-11 
-Refer to Exhibit 34-11.If the...

Question 8

In order for good X to be a likely candidate for offshoring,it must be produced with ______________ labor intensity and be a relatively ________________ good.
A)low;light
B)low;heavy
C)high;heavy
D)high;light

Accepted Answer

Goods that are likely candidates for offshoring are typically those that are produced with high labor intensity, as labor costs can be significantly reduced by moving production to countries with lower wages. Additionally, if the good is relatively light, it means it will be cheaper to transport, making offshoring more economically viable.

Question 9

Exhibit 34-11 -Refer to Exhibit 34-11.P_W is the price that exists in the market before a tariff is imposed and P_{W + T} is the price that exists in the market after a tariff is imposed.As a result of the tariff,producers' surplus __________ by the area __________. A)rises;EBCF B)falls;DBE C)rises;FCG D)falls;DBCG E)none of the above

Accepted Answer

The answer of Exhibit 34-11 -Refer to Exhibit 34-11.P_W is...

Question 10

List and describe three arguments that help to explain why nations sometimes restrict trade.Does everyone agree with these arguments?

Accepted Answer

The answer of List and describe three arguments that help...

Question 11

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 ________________.
A)5 to 7;reduce;"smaller"
B)8 to 10;reduce;"bigger"
C)5 to 7;raise;"bigger"
D)8 to 10;raise;"bigger"

Accepted Answer

The textbook states that various studies have shown there are 5 to 7 degrees of separation between any two people in the world. Social media would be expected to reduce this number, making the world "smaller." Therefore, option A, which states 5 to 7 degrees of separation would be reduced and the world would be "smaller," is the correct answer. Options B and D are incorrect because they state that social media would make the world "bigger" and raise the number of degrees of separation. Option C is incorrect because it has the correct range of degrees of separation but states that social media would raise them, which is the opposite of what the question asks.

Question 12

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) A)LGK + JHI. B)KGHJ. C)GCH + JHI. D)LGK. E)none of the above

Accepted Answer

The answer of Exhibit 34-12 -Refer to Exhibit 34-12.P_W is...

Question 13

A quota on imported 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.
A)raises;increases;decreases;generates;producers;consumers and government
B)lowers;increases;decreases;does not generate;producers;consumers
C)raises;increases;decreases;does not generate;consumers;producers and importers
D)raises;decreases;increases;generates;consumers;producers and government

Accepted Answer

A quota on imported avocadoes would raise the price of avocadoes due to limited supply. This would increase the revenue of domestic avocado growers and in turn decrease the surplus of avocado buyers. However, there would be no tariff revenue generated as it is a quota-based restriction rather than a tariff. The loss to consumers, who pay more for the same quantity of avocadoes, is more than the gain to domestic producers and importers. Therefore, there is a net loss to society.

Question 14

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 __________. A)Q₁ to Q₄ B)Q₃ to Q₂ C)Q₁ to Q₃ D)Q₄ to Q₂ E)Q₃ to Q₄

Accepted Answer

When the price in the market rises due to the tariff, the quantity demanded usually decreases. However, in this case, the domestic sales rise, which implies that the demand is relatively inelastic. Therefore, the quantity demanded will not decrease by a large amount. Option C shows an increase in quantity demanded from Q₁ to Q₃, which is a reasonable middle-ground estimate for the expected increase in domestic sales. Options A, B, D, and E are unlikely to occur because they either overestimate or underestimate the increase in domestic sales.

Question 15

Exhibit 34-11 -Refer to Exhibit 34-11.P_W is the price that exists in the market before a tariff is imposed and P_{W + T} is the price that exists in the market after a tariff is imposed.The tariff results in a net loss to society equal to area(s) A)DBE + FCG. B)EBCF. C)DBE + EBCF. D)FCG + EBCF. E)none of the above

Accepted Answer

The tariff results in a net loss to society equal to the areas of deadweight loss, which are represented by the triangles DBE and FCG. These areas represent the efficiency losses due to the reduction in consumption and production that result from the tariff.

Question 16

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.

Accepted Answer

The answer of Explain why the government is often more...

Question 17

Describe who benefits and who loses from tariffs and from quotas.What is the major difference between the effects of a quota and the effects of a tariff?

Accepted Answer

The answer of Describe who benefits and who loses from...

Question 18

With a quota,the __________ is greater than the __________.
A)loss in producers' surplus;gain in consumers' surplus
B)loss in consumers' surplus;loss in producers' surplus plus higher total revenues on the imported goods
C)loss in producers' surplus plus higher total revenues on the imported goods;consumers' surplus
D)tax;revenue
E)quota-determined price;quota-determined output

Accepted Answer

With a quota, the limit on the quantity of imports reduces the supply available in the market, leading to an increase in the price of imported goods. This results in a loss in consumers' surplus (as they have to pay a higher price) and a loss in producers' surplus (as they are restricted in terms of the quantity they can sell). However, the higher price on imported goods generates higher total revenues for the producers who are able to sell their products in the market. Therefore, the net effect is a loss in consumers' surplus and producers' surplus, along with higher total revenues on the imported goods.

Question 19

Exhibit 34-11 -Refer to Exhibit 34-11.P_W is the price that exists in the market before a tariff is imposed and P_{W + T} is the price that exists in the market after a tariff is imposed.Because of the tariff,consumers' surplus falls and producers' surplus rises by the area A)BCFE. B)BCGE. C)DBCG. D)DBCF. E)none of the above

Accepted Answer

The answer of Exhibit 34-11 -Refer to Exhibit 34-11.P_W is...

Question 20

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.
A)raise;lower;lower
B)lower;raise;lower
C)raise;lower;raise
D)lower;lower;raise

Accepted Answer

A tariff on strawberries will raise the price of strawberries in the domestic market because the cost of importing them becomes higher. This, in turn, lowers the quantity of strawberries imported as they become more expensive for consumers and businesses. Consequently, consumers' surplus is lowered because consumers have to pay more for strawberries or switch to other goods, reducing the overall satisfaction or benefit they get from consuming strawberries.

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

If a U.S.company operates within a competitive environment and chooses to offshore part of its production process,the resulting change in the firm's costs should shift the ____ curve for its product _,thus _____ the price of the product being produced.

Exhibit 34-11 -Refer to Exhibit 34-11.P_W is the price that exists in the market before a tariff is imposed and P_{W + T} is the price that exists in the market after a tariff is imposed.Tariff revenues equal the area

Exhibit 34-12 -Refer to Exhibit 34-12.P_W is the price that exists in a free world market.A quota is imposed and imports are Q₄ - Q₃.Importers gain revenues equal to the area __________.

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.

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

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

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

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.P_W is the price that exists in the market before a tariff is imposed and P_{W + T} is the price that exists in the market after a tariff is imposed.As a result of the tariff,producers' surplus by the area .

List and describe three arguments that help to explain why nations sometimes restrict trade.Does everyone agree with these arguments?

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 __________.

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)

A quota on imported 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 34-11 -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 __________.

Exhibit 34-11 -Refer to Exhibit 34-11.P_W is the price that exists in the market before a tariff is imposed and P_{W + T} is the price that exists in the market after a tariff is imposed.The tariff results in a net loss to society equal to area(s)

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.

Describe who benefits and who loses from tariffs and from quotas.What is the major difference between the effects of a quota and the effects of a tariff?

With a quota,the is greater than the .

Exhibit 34-11 -Refer to Exhibit 34-11.P_W is the price that exists in the market before a tariff is imposed and P_{W + T} is the price that exists in the market after a tariff is imposed.Because of the tariff,consumers' surplus falls and producers' surplus rises by the area

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.

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

If a U.S.company operates within a competitive environment and chooses to offshore part of its production process,the resulting change in the firm's costs should shift the ______________ curve for its product ___________________,thus _____________ the price of the product being produced.

Exhibit 34-11 -Refer to Exhibit 34-11.PW is the price that exists in the market before a tariff is imposed and PW + T is the price that exists in the market after a tariff is imposed.Tariff revenues equal the area

Exhibit 34-12 -Refer to Exhibit 34-12.PW is the price that exists in a free world market.A quota is imposed and imports are Q4 - Q3.Importers gain revenues equal to the area __________.

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

Exhibit 34-12 -Refer to Exhibit 34-12.PW 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

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

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.PW is the price that exists in the market before a tariff is imposed and PW + T is the price that exists in the market after a tariff is imposed.As a result of the tariff,producers' surplus __________ by the area __________.

List and describe three arguments that help to explain why nations sometimes restrict trade.Does everyone agree with these arguments?

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 ________________.

Exhibit 34-12 -Refer to Exhibit 34-12.PW 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 34-11 -Refer to Exhibit 34-11.A tariff raises the price in the market from PW to PW + T.As a result,U.S.domestic sales rise from __________.

Exhibit 34-11 -Refer to Exhibit 34-11.PW is the price that exists in the market before a tariff is imposed and PW + T is the price that exists in the market after a tariff is imposed.The tariff results in a net loss to society equal to area(s)

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.

Describe who benefits and who loses from tariffs and from quotas.What is the major difference between the effects of a quota and the effects of a tariff?

With a quota,the __________ is greater than the __________.

Exhibit 34-11 -Refer to Exhibit 34-11.PW is the price that exists in the market before a tariff is imposed and PW + T is the price that exists in the market after a tariff is imposed.Because of the tariff,consumers' surplus falls and producers' surplus rises by the area

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.

If a U.S.company operates within a competitive environment and chooses to offshore part of its production process,the resulting change in the firm's costs should shift the ____ curve for its product _,thus _____ the price of the product being produced.

Exhibit 34-11 -Refer to Exhibit 34-11.P_W is the price that exists in the market before a tariff is imposed and P_{W + T} is the price that exists in the market after a tariff is imposed.Tariff revenues equal the area

Exhibit 34-12 -Refer to Exhibit 34-12.P_W is the price that exists in a free world market.A quota is imposed and imports are Q₄ - Q₃.Importers gain revenues equal to the area __________.

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

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

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.P_W is the price that exists in the market before a tariff is imposed and P_{W + T} is the price that exists in the market after a tariff is imposed.As a result of the tariff,producers' surplus by the area .

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 __________.

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 34-11 -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 __________.

Exhibit 34-11 -Refer to Exhibit 34-11.P_W is the price that exists in the market before a tariff is imposed and P_{W + T} is the price that exists in the market after a tariff is imposed.The tariff results in a net loss to society equal to area(s)

With a quota,the is greater than the .

Exhibit 34-11 -Refer to Exhibit 34-11.P_W is the price that exists in the market before a tariff is imposed and P_{W + T} is the price that exists in the market after a tariff is imposed.Because of the tariff,consumers' surplus falls and producers' surplus rises by the area

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.