In a Market That Moves from a Situation of No

question 68

Multiple Choice

In a market that moves from a situation of no trade to a situation where a good is exported, the price of the good ________ and the quantity produced by the domestic industry ________.

• A)rises; increases
• B)falls; decreases
• C)does not change; increases
• D)does not change; decreases
• E)rises; does not change

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Definitions:

Ernst Weber

A pioneering psychologist best known for his work in the sensory perception field, including Weber's Law regarding the just-noticeable difference in stimuli.

Sensation

The process through which the senses pick up visual, auditory, and other sensory stimuli and transmit them to the brain.

Perception

The method through which people arrange and understand their sensory perceptions to assign significance to the world around them.

Difference Threshold

The smallest amount by which a stimulus must be changed in order to notice that the change has occurred, also known as the just noticeable difference (JND).