During 2005-2006 Europe Imported More Than $70 Million Worth of U.S

question 14

Multiple Choice

During 2005-2006 Europe imported more than $70 million worth of U.S. long-grain rice. In 2006, the European Union threatened to restrict imports of long-grain rice because traces of genetically modified rice were found mixed in to commercial supplies. What would NOT be an effect in the European rice market if U.S. imports were banned?

• A) There would be an increase in long-grain rice consumption.
• B) There would be an increase European in rice production.
• C) The price of long-grain rice would increase.
• D) The quantity of long-grain rice imports would decrease.

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Definitions:

Causal Relationship

A connection between two variables where a change in one directly affects the change in the other.

Actor-Observer Effect

A psychological phenomenon in which people tend to attribute their own actions to situational factors while attributing other people's actions to their internal characteristics.

Fundamental Attribution Error

The tendency to explain someone's behavior based on internal factors, such as personality or disposition, while underestimating external factors.

Locus of Causality

The perceived source of control over events in an individual's life, internal or external to oneself.