Currently, a Farmer Can Either Grow 40 Bushels of Wheat

question 4

Multiple Choice

Currently, a farmer can either grow 40 bushels of wheat or 120 bushels of corn per acre. If he were able to trade 70 bushels of corn for 30 bushels of wheat, would he be better off or worse off?

• A) worse off, because his opportunity cost of wheat would increase from 2.33 bushels of corn to 3 bushels of corn
• B) better off, because his opportunity cost of wheat would fall from 80 bushels to 50 bushels
• C) better off, because his opportunity cost of wheat would fall from 3 bushels of corn to 2.33 bushels
• D) worse off, because his opportunity cost of wheat would increase from 50 bushels of corn to 80 bushels of corn

Identify and differentiate between primary, secondary, and tertiary reinforcements.

Comprehend the concept of shaping behavior through successive approximations.

Recognize the significance of the relationship between behavior and its consequences.

Analyze real-life scenarios to identify examples of operant conditioning.

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Definitions:

Contingent Liability

A potential financial obligation that may arise depending on the outcome of a future event.

Journal Entry

A record in accounting that denotes a business transaction, including information on the accounts affected and whether they are debited or credited.

Footnotes

Additional information provided at the bottom of financial statements to provide more detail or clarify the data presented in the statements themselves.

Lessor Maintains Control

A leasing arrangement where the lessor retains substantial control or rights in the leased asset during and after the lease term.