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When Jonas was 16, Jonas's girlfriend drove a small, yellow convertible, and just the sight of it in the high school parking lot sent his heart racing with excitement. After they broke up, he thought of her with fond memories but his heart stopped racing at the sight of her car. Jonas is quite surprised, then, when he sees a similar car at college and his heart races and his pulse pounds! What principles of learning explain Jonas's reactions?
Comparative Advantage
is the economic theory that a country should specialize in producing and exporting goods and services for which it has the lowest opportunity cost.
Opportunity Cost
The cost of forgoing the next best alternative when making a decision.
Marginal Costs
The additional cost incurred when producing one more unit of a particular good or service.
Trading Partner
A country or organization that engages in import or export transactions with another entity, indicating a regular commercial relationship.
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