When Countries Create a Free Trade Area and Increase Market

question 39

Multiple Choice

When countries create a free trade area and increase market size, the schedule relating

• A)price to the number of firms in the market shifts to the left.
• B)average total cost to the number of firms in the market shifts to the left.
• C)average total cost to the number of firms in the market shifts to the right.
• D)price to the number of firms in the market shifts to the right.
• E)average total cost to the number of firms in the market remains constant.

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Definitions:

Projective Test

A personality assessment test that presents individuals with an ambiguous stimulus and asks them to describe it or tell a story about it to project their own meaning onto the stimulus.

Personality Test

A questionnaire or other standardized instrument designed to reveal aspects of an individual's character or psychological makeup.

Behavioral Activation System

A psychological concept referring to the brain system that regulates pursuit of rewards, motivating approach behaviors.

Gray's Reinforcement Sensitivity Theory

A theory that suggests differences in an individual's sensitivity to reward and punishment motivate differences in personality, behavior, and psychopathology.