In a Two-Nation World,if Nation A's Export Prices Increase Relative

question 10

Multiple Choice

In a two-nation world,if Nation A's export prices increase relative to their import prices,which of the following will occur?

• A)Terms of trade improve for both nations
• B)Terms of trade worsen for Nation A and improve for their trade partner
• C)Terms of trade improve for Nation A and worsen for their trade partner
• D)Terms of trade worsen for both nations

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Definitions:

Negative Reinforcement

A behavioral principle where the removal of an unpleasant stimulus following a desired behavior increases the likelihood of that behavior being repeated.

Positive Reinforcement

The addition of a rewarding stimulus following a behavior, intended to increase the likelihood of that behavior reoccurring.

Behaviorism

A branch of psychology that focuses on (relatively) simple explanations for outward behavior and is unconcerned with the inner workings of the mind.

Social Learning Theory

Social learning theory proposes that new behaviors can be acquired by observing and imitating others, highlighting the importance of social influences on learning.