How Could Conditions of Imperfect Competition Explain Deviations from PPP

question 144

Multiple Choice

How could conditions of imperfect competition explain deviations from PPP?

• A) Imperfect competition means that prices are higher than costs and may not converge.
• B) Governments often restrict trade in those goods.
• C) Goods sold under conditions of imperfect competition are often inferior.
• D) Arbitrageurs do not recognize profit opportunities in these markets.

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Definitions:

Operant Conditioning

Skinner’s term for the process of learning in which an organism’s behavior is shaped by the effect of the behavior on the environment.

Respondent Conditioning

Skinner’s term for classical conditioning.

Habituation

The process of becoming accustomed to a stimulus or environment, resulting in a decreased response over time.

Learning Mechanism

Processes through which individuals acquire new knowledge, skills, behaviors, or values, often through observation, experience, or instruction.