Everything Else Held Constant,a Shift in Tastes in the U

question 67

Multiple Choice

Everything else held constant,a shift in tastes in the U.S. towards American goods will ________ net exports in the U.S. and cause the quantity of aggregate output demanded to ________ in Mexico.

• A)decrease;rise
• B)decrease;fall
• C)increase;rise
• D)increase;fall

---

Definitions:

Decision Tree

A decision tree is a graphical representation used in decision analysis to display choices and their possible outcomes, including chance event outcomes, resource costs, and utility.

Opportunity Loss

The difference in value between the chosen option and the best possible option that was not chosen.

Optimal Alternative

The best or most effective option among a set of alternatives, under given conditions.

Expected Monetary Value(EMV)

A calculated average of all possible outcomes of a decision, where each outcome is weighted by its probability of occurring and its monetary impact.