Exam 20: International Trade

A theory predicts that all swans are white.A thousand people go out into the field and identify the color of the swans they see.Their results reveal that,of the 10,000 swans they saw,all were white.It follows that

Which of the following is inconsistent with the burglary crime model presented 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 = 50 percent Loot = $30,000 Pp = 10 percent I = $10,000 F = $25,000 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.

Theories should be judged based upon how consistently and precisely they predict and how well they explain things.

If a theory can predict those things that you should observe if it is right and can also predict those things that you should observe if it is wrong,it is said to have the virtue of falsifiability.

Smith says that criminals are rational and that they consider both the benefits and costs of criminal activity.Jones disagrees.He says criminals are irrational and can't possibly be considering both the benefits and costs of criminal activity.If they did,he argues,they wouldn't be criminals.An economist who wants to figure out if criminals are rational,would most likely build a

A person who lives in a good-climate city says,"It's expensive to live here,but at least the climate is free." In terms of a theory advanced in the textbook,this person has either forgotten or is unaware that

Which of the following statements is false?

There is a direct relationship between the opportunity cost of bad behavior in a public venue and the use of bad behavior in that venue.

Suppose you go to a high school and identify groups of students sitting at different lunch tables.To you it appears that everyone on the football team sits at one table,everyone who gets really high grades sits at another table,everyone who is in the drama club sits at another table,and so on.This outcome could be

A gift-giver's efficient number of gifts (to give to a gift-recipient)has fallen from 10 to 8.This could be because

The larger a percentage of the population a person is,the ______________ likely that person will have to further engage with people she meets.This implies that she will generally be ____________ likely to behave unethically and poorly with the people in her town as the population of her town increases.

We state that the evidence __________________ if evidence is consistent with a theory's predictions.

The instructors at College A are regularly late for their office hours.Based on a theory presented in the textbook,we would predict that the gap between the ______________student tuition and ___________equilibrium tuition is ___________ at College A.

A theory is a perfect description of reality.

Which of the following theories is not falsifiable or refutable?

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

A theory predicts that the more a student studies,the higher his or her grades will be.This theory is

Scientists prefer to advance irrefutable theories,rather than refutable theories.

Kristie currently spends her $1,000 a week income as follows: $500 on X,$300 on Y,and $200 on Z.Her mother then gives her a $100 bill and tells her to use it to buy more Z.Kristie actually takes the $100 her mother gave to her,adds $40 to the $200 she usually spends on Z,and buys $240 worth of Z.Did Kristie's mother's $100 go to buy only Z?