A Government-Set Price flOor on a Product

question 37

Multiple Choice

A government-set price floor on a product

• A) does not interfere with the rationing function of price in a market system.
• B) will drive resources away from the production of the product.
• C) will attract more resources toward the production of the product.
• D) is intended to benefit the buyers of the product.

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Definitions:

Rescorla-Wagner Model

A model of classical conditioning that proposes that learning is determined by the extent to which a unconditioned stimulus is unexpected or surprising.

Conditioned Strength

The extent to which a conditioned stimulus can elicit a strong and reliable conditioned response after associative learning has occurred.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a response without any need for learning.

CS Preexposure Effect

The phenomenon where prior exposure to a conditioned stimulus without the unconditioned stimulus can inhibit the formation of a conditioned response when both are later paired.