Suppose a Country Abandons a No-Trade Policy in Favor of a Free-Trade

question 272

Multiple Choice

Suppose a country abandons a no-trade policy in favor of a free-trade policy.If,as a result,the domestic price of pistachios decreases to equal the world price of pistachios,then

• A)that country becomes an exporter of pistachios.
• B)that country has a comparative advantage in producing pistachios.
• C)at the world price,the quantity of pistachios demanded in that country exceeds the quantity of pistachios supplied in that country.
• D)All of the above are correct.

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Definitions:

Negative Reinforcer

An unpleasant stimulus that, when removed following a behavior, increases the likelihood of that behavior being repeated.

Probability

The extent to which an event is likely to occur, measured by the ratio of the favorable cases to the whole number of possible cases.

Escape Conditioning

A learning process in which an organism learns to perform a behavior to terminate an aversive stimulus.

Negative Reinforcement

The strengthening of a behavior because it removes or diminishes a negative outcome or stimulus.