As a result of U.S. tariffs on fishnets produced in other nations, the quantity of fishnets purchased in the United States has

Steel producers in the United States observe that foreign sales of U.S. steel has drastically declined due to stringent trade policies adopted by the foreign governments and unfair treatment of U.S. steel exports in foreign countries. The lobbying efforts of such loss making U.S. steel manufacturers induces the domestic government to restrict the entry of imported steel and help stimulate the

sales of domestically produced steel. Which of the following is most similar to the example mentioned above? a. A tariff imposed by the government to stimulate domestic production of a high-technology good with positive spillover effects b. A tariff imposed by the government on the import of cotton textiles because it is an infant industry in the domestic country c. An import tariff applied against a foreign monopoly supplying the domestic market d. Taxes imposed by the government on an import competing industry that generates a negative production externality e. Reciprocal tariffs introduced by the government of Mexico on tobacco imports from Brazil in retaliation to unfair treatment of Mexican tobacco exports to the latter

Answer the following statement true (T) or false (F)

1) The availability heuristic refers to people purchasing what is most easily accessible. 2) The self-serving bias causes people to act only in their self-interest. 3) The overconfidence effect exists when people underestimate their chances of being wrong. 4) Framing effects may cause the same person to view the same new situation differently depending on whether that new situation makes him or her better or worse off.