The Terms of Trade Move in Favour of a Country

question 6

Multiple Choice

The terms of trade move in favour of a country when the

• A) absolute price of imports decreases.
• B) absolute price of exports increases.
• C) relative price of imports increases.
• D) relative price of imports decreases.
• E) price of exports and imports decrease.

---

Definitions:

Frequency Increase

An elevation in the rate or number of occurrences of a particular event or phenomenon within a specific time frame.

Partial Reinforcement

A conditioning principle where a behavior is reinforced only some of the time, leading to a slower acquisition of behavior but greater resistance to extinction.

Shaping

The process of reinforcing successive approximations of a desired behavior to teach new behaviors.

Reinforces

In psychology, refers to consequences that increase the likelihood of the behavior that led to them being repeated in the future.