Trade Will Tend to Equalize the Price of Goods, but Not

question 126

True/False

Trade will tend to equalize the price of goods, but not the price of factors of production.

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Definitions:

Event Schemas

Cognitive structures that help individuals organize and interpret information about sequences of actions that occur in specific situations.

First Instinct Fallacy

The mistaken belief that an individual's first choice or gut reaction is always the correct or best one.

Statistical Regression

A statistical technique that determines the relationship between a dependent variable and one or more independent variables to predict the outcome of the dependent variable.

Errors And Biases

Systematic deviations from norm or rationality in judgment, whereby inferences about other people and situations may be drawn in an illogical fashion.