Which of the Following Most Accurately States the Economic Significance

question 154

Multiple Choice

Which of the following most accurately states the economic significance of exchange?

• A) Physical goods have value because they exist; exchange can neither increase nor decrease their value.
• B) Production of physical goods creates value; exchange merely redistributes this value.
• C) Exchange creates value by moving goods from parties who value them less to parties who value them more.
• D) Exchange reduces value since it consumes resources without adding to the physical supply of goods.

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Definitions:

Negative Reinforcement

A response or behavior is strengthened by stopping, removing, or avoiding a negative outcome or aversive stimulus.

Extinction

In behavioral psychology, the process through which a conditioned response is weakened by presenting the conditioned stimulus without the unconditioned stimulus, eventually leading to the response diminishing or disappearing.

Operant Conditioning

A method of learning that employs rewards and punishments for behavior, influencing the likelihood of that behavior being repeated.

Classical Conditioning

A method of learning that happens by linking an outside stimulus with one that naturally occurs.