How Will an Export Quota Imposed by a Large Exporting

question 58

Multiple Choice

How will an export quota imposed by a large exporting country affect the country's welfare?

• A) It will cause an increase in the country's welfare if the terms-of-trade gains exceed consumption and production deadweight losses.
• B) It will always cause a decrease in the country's welfare.
• C) It will always cause an increase in the country's welfare.
• D) It will not change the country's welfare.

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Definitions:

Guthrie

Refers to Edwin Ray Guthrie, a psychologist known for his "one trial learning" theory, emphasizing the importance of contiguity in learning.

Guthrie

Refers to Edwin Ray Guthrie, a psychologist known for his theory that learning is based on a stimulus-response association.

Learning Theory

A set of theories that describe how behaviors are acquired, processed, and retained through interaction with the environment.

Single Trial

A learning or experimental situation where an organism is exposed to a stimulus or condition only once, used to assess immediate and initial responses.