In 2007, European Union (EU) Negotiators Offered to Cut Tariffs

question 50

Multiple Choice

In 2007, European Union (EU) negotiators offered to cut tariffs for Latin American bananas to avoid "banana wars." What are the effects of a cut in tariffs?

• A) Europe will start to export bananas.
• B) The price of bananas for consumers will increase.
• C) The quantity of bananas imported into the EU will increase.
• D) The quantity of bananas produced in the EU (such as in France and Spain) will increase.

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Definitions:

Psychosexual Development

Freud's theory that childhood development occurs in a series of fixed psychosexual stages, each focused on erogenous zones that shape personality.

Anal Phase

The second stage in Freud's psychosexual development, focusing on bowel and bladder elimination and control issues.

Self-Serving Bias

The common tendency to attribute positive events to one's own character but attribute negative events to external factors.

Better-Than-Average Effect

The cognitive bias where individuals overestimate their own qualities and abilities compared to others.