When There Is No Trade Between Econostan and Macroland, the Price

question 253

Multiple Choice

When there is no trade between Econostan and Macroland, the price of orange juice is $1 per cup in Econostan and $0.50 in Macroland, while the price of shoes is $40 per pair in Econostan and $45 per pair in Macroland at current exchange rates. Assuming there is no change in exchange rates, which result could be expected regarding terms of trade if trade opened up between the two countries?

• A) The price of orange juice will fall, and the price of shoes will rise in Econostan.
• B) The price of shoes will fall, and the price of orange juice will rise in Econostan.
• C) The price of orange juice will rise, and the price of shoes will rise in Macroland.
• D) The price of both orange juice and shoes will fall in Econostan.

Grasp the concepts of descriptive and injunctive norms and their roles in social behavior.

Identify the effects of social influence on individual beliefs and behaviors.

Recognize the role of mimicry and priming in social behavior and attitudes.

Analyze the impact of influential models and reinforcement in social learning theory.

---

Definitions:

Railroad System

A network of tracks, trains, and facilities for the transportation of passengers and goods over long distances, significantly contributing to economic development and the expansion of territories.

American Economy

The complex system of production, distribution, and consumption of goods and services within the United States, characterized by a mixed economy with both private and public enterprises.

Concepts of Time

The various ways in which societies understand and organize time, often influenced by cultural, religious, and scientific ideas.

Economic Transformation

The comprehensive change in the structure and composition of an economy, often driven by technological innovation, shifts in industries, and changes in consumer preferences.