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An Example of a Type of Policy That Creates Distortions

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An example of a type of policy that creates distortions in local economies is government subsidies for pesticide use by farmers. The distortion effects include


Definitions:

Negative Reinforcement

A type of operant conditioning that occurs when a behavior is strengthened because it is followed by the removal of an unpleasant stimulus.

Punishment

A process in behavior analysis and modification, which involves applying an undesired or negative stimulus to decrease or eliminate an undesirable behavior.

Rate of Response

A measurement in behavioral psychology that indicates how often a behavior is performed within a set period of time.

Contingencies

In the context of behavior, it refers to the dependence of certain outcomes on specific conditions or actions.

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