Suppose Country X Is One of the Largest Exporter of Coffee

question 31

Multiple Choice

Suppose country X is one of the largest exporter of coffee in the world. A recent massive cyclone has destroyed much of the coffee crop in country X and has considerably lowered its exports. Which of the following is a likely consequence of this disaster?

• A)The size of country X's trade triangle will increase.
• B)The price of coffee in the international market will decline.
• C)The price of country X's imports relative to the price of its exports will increase unambiguously.
• D)Country X's terms of trade will improve.

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Definitions:

Automatic Processing

The ability of the brain to perform tasks with minimal or no conscious thought, often as a result of learning or repetition.

Recall, Recognition, And Relearning

Cognitive processes related to memory, where recall involves retrieving information without cues, recognition requires identifying information from available options, and relearning measures how much faster information is processed or learned again after it has been previously learned and forgotten.

Encoding

The initial process of transforming information into a form that can be stored in memory, an essential step in the creation of new memories.

Echoic Memory

A subtype of sensory memory that retains audio information for a brief period, usually up to several seconds after the original sound has ceased.