Which of the Following Statements About Exchange Is True

question 195

Multiple Choice

Which of the following statements about exchange is true?

• A) If everyone starts off with the same quantities of each good, it would be impossible to realize gains from trade.
• B) Exchange tends to move each good toward those individuals who value the good more highly.
• C) Exchange always results in one party being made better off and the other being made worse off.
• D) For trade to occur, everyone must start off with the same value of the good that is traded.

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Definitions:

Unconditioned Response

An automatic, natural reaction to a stimulus that occurs without the need for learning.

Conditioned Response

A learned response to a previously neutral stimulus that becomes elicited by the stimulus after repeated associations with an unconditioned stimulus.

Lemon Juice

A citrus liquid obtained from lemons, used primarily for its flavoring and culinary properties, notable for its high vitamin C content.

Second-Order Conditioning

A form of learning in which a neutral stimulus is first made meaningful through classical conditioning. Then, that stimulus (the CS) is paired with a new, neutral stimulus until the new stimulus also elicits the conditioned response.