Suppose Foreign Shrimp Prices Drop by 32 Percent and Importers

question 80

Multiple Choice

Suppose foreign shrimp prices drop by 32 percent and importers gain a 90 percent market share. From this information, what would economists strongly suspect about this industry?

• A) Foreigners have a comparative advantage in shrimping.
• B) Americans have a comparative advantage in shrimping.
• C) Foreign sellers probably are colluding on price to maximize profits.
• D) The large sales of foreigners indicate that they are better strategic bargainers than Americans are.

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Definitions:

Conceptual Frameworks

Structures of concepts and ideas that guide thinking, research, and practice in various fields by providing an organized way to make sense of related phenomena.

Piaget

A Swiss psychologist known for his pioneering work in child development, specifically his theory of cognitive development that describes how children construct a mental model of the world.

Formal Operational Stage

In Piaget’s theory, the stage of cognitive development (normally beginning about age 12) during which people begin to think logically about abstract concepts.

Crib Death

Also known as Sudden Infant Death Syndrome (SIDS), it refers to the sudden and unexplained death of a seemingly healthy baby during sleep.