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How Do Economists Study the Interactions Between Households and Businesses

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How do economists study the interactions between households and businesses?


Definitions:

Secondary Reinforcer

A stimulus that becomes reinforcing through its association with a primary reinforcer, meaning it is not naturally rewarding.

Shaping

A process in behavioral psychology involving the reinforcement of closer and closer approximations of a desired behavior.

Stimulus Discrimination

The ability to differentiate between similar stimuli and respond appropriately to each.

Variable-Ratio Schedule

A reinforcement schedule in which a response is rewarded after an unpredictable number of responses, making it highly effective for maintaining consistent behavior.

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