Which of the Following Statements Is an Example of an Economic

question 87

Multiple Choice

Which of the following statements is an example of an economic trend?

• A) The Federal Reserve announces that it will decrease the interest rate charged to banks.
• B) Congress passes legislation that increases the tax rate on corporations.
• C) A new computer chip is developed that will allow for miniaturization of many electronic devices.
• D) The European Union declares an increase in tariffs on all agricultural goods.

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Definitions:

Conformity

The process by which individuals adjust their behaviors, beliefs, or attitudes to align with the norms of a group or society.

Pluralistic Ignorance

A psychological state where a majority of group members privately reject a norm, but assume incorrectly that most others accept it.

New Bar

a recently established establishment that serves alcoholic beverages and often other types of drinks and sometimes food.

Cooperating

The act of working together towards a common goal or purpose, often requiring compromise or collaboration.