Suppose the Country of Ceria and Lithinia Imposed Tariffs on Imports

question 18

Multiple Choice

Suppose the country of Ceria and Lithinia imposed tariffs on imports from all countries,and then they set up a free trade area,scrapping all trade barriers between themselves but maintaining tariffs on imports from the rest of the world.Now,Ceria begins to import sugar from Lithinia.However,Ceria had previously been importing sugar from another country,Cadnia,which produced sugar more cheaply than Ceria or Lithinia.This is an example of

• A)trade creation.
• B)strategic pricing.
• C)synergy.
• D)trade diversion.
• E)protectionism.

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Definitions:

Extrinsic Motivation

Motivation that is driven by external rewards such as money, fame, grades, and praise.

Subject Interesting

A subjective assessment indicating how much an individual is intrigued, engaged, or finds a specific topic or activity appealing.

Drive Motivation

An internal state that energizes, orients, and selects behavior to fulfill a need or achieve a goal.

Extrinsic Motivation

Motivation driven by external rewards such as money, fame, grades, or praise, rather than by intrinsic satisfaction in the activity itself.