Suppose in the Country of Nash That the Price of Corn

question 147

Short Answer

Suppose in the country of Nash that the price of corn is $4 per bushel with no trade allowed. If the world price of corn is $3 per bushel and if Nash allows free trade, will Nash be an importer or an exporter of corn?

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Definitions:

Drive-Reduction Theory

A theory of motivation suggesting that biological needs create internal states of tension or arousal—called drives—which organisms are motivated to reduce.

Biological Concept

Fundamental ideas or principles that relate to the biological sciences, encompassing a wide range of phenomena from genetic inheritance to evolution.

Arousal Theory

A theory of motivation suggesting that people are motivated to maintain an optimal level of alertness and physical and mental activation.

Extrinsic Motivation

Motivation driven by external rewards, such as money, fame, grades, or praise.