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:

Extinction

In behavioral psychology, the gradual weakening and eventual disappearance of a conditioned response, typically occurring when the conditioned stimulus is no longer paired with the unconditioned stimulus.

Operant Conditioning

An educational method where behavior is altered by the application of rewards or penalties.

Reinforced

In behavioral psychology, refers to any stimulus which strengthens or increases the probability of a specific response.

Behavior

The range of actions and observable emotions of individuals or groups in response to external or internal stimuli.