According to the Law of Effect

question 41

Multiple Choice

According to the law of effect:

• A)Tommy will stop misbehaving at school if he is sent to his room when he gets home.
• B)Kim will continue reading if reinforced after each time she is interested in reading.
• C)Tony will readily learn new tasks by observing someone else.
• D)Katrina will play nicely with her sister if she is given a new toy to play with first.

Understand the concept of producer and consumer surplus, and calculate changes in these surpluses due to market interventions.

Analyze the impacts of minimum wage policies on the labor market.

Discuss the role of elasticity in determining the effects of quotas and price supports on market outcomes.

Understand the method to calculate total welfare changes (consumer and producer surplus, plus government cost/benefit) due to policy implementations.

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Definitions:

Compound Interest

This refers to interest earned or paid on the initial amount of a deposit or loan, plus any interest that has accrued over time.

Present Value

Present value is the current worth of a future sum of money or stream of cash flows given a specified rate of return.

Percentage Calculation

The mathematical process of finding a percentage, which involves multiplying a value by a percent and dividing by 100.

Average Tax Rate

The ratio of the total amount of taxes paid to the total taxable income, showing the percentage of income that goes to taxes.