If a Decrease in the Demand for Corn Leads to Economic

question 168

Multiple Choice

If a decrease in the demand for corn leads to economic losses for corn farmers,

• A) some existing corn farmers will exit the industry.
• B) the price of corn will remain low in the long run due to the economic losses.
• C) the suppliers of corn will suffer long-run economic losses.
• D) all of the above are correct.

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Definitions:

Defense

Psychological strategies used unconsciously to protect oneself from anxiety arising from unacceptable thoughts or feelings.

Transference

A psychological phenomenon in which an individual redirects feelings and desires, often unconsciously, from one person to another, particularly noted in psychoanalytic therapy.

Aversive Conditioning

A type of behavior conditioning where a noxious stimulus is paired with a particular unwanted behavior to reduce its occurrence.

Classical Conditioning

A simple form of learning in which a neutral stimulus comes to evoke the response usually evoked by another stimulus by being paired repeatedly with the other stimulus.