An Efficient Economy Would Set the Marginal Product in the Traditional

question 35

Multiple Choice

An efficient economy would set the marginal product in the traditional sector

• A) lower than that in the modern non-traditional sector.
• B) higher than that in the modern sophisticated sector.
• C) equal to that in the modern sophisticated sector.
• D) lower in the relatively capital intensive sector.
• E) higher in the relatively capital intensive sector.

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Definitions:

Unconditioned Stimulus

A stimulus that naturally triggers a reflexive response without any prior learning or conditioning.

Negative Reinforcement

A behavior modification technique where the removal of an unpleasant stimulus in response to a behavior increases the likelihood of that behavior being repeated.

Unpleasant Stimulus

A stimulus that is undesirable or disagreeable and tends to produce a negative response in an individual.

Compensation

A defense mechanism characterized by efforts to overcome imagined or real inferiorities by developing one’s abilities.