Which of the Following Is Not an Example of a Natural

question 253

Multiple Choice

Which of the following is not an example of a natural experiment an economist might use to evaluate a theory?

• A)Transit ridership increased in Atlanta following an increase in gas prices.
• B)Federal tax revenue increased following a decrease in the tax rate.
• C)Students in a principles of microeconomics course are asked to play a game with classmates to determine what decisions they make under certain circumstances.
• D)Following the imposition of austerity measures,the growth rate of the economy in Greece slowed.

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Definitions:

Consumer Credit

A form of credit extended to consumers to finance the purchase of goods, services, or for personal use, subject to repayment terms.

Commercial Credit

A type of financing that allows businesses to obtain goods or services with payment to be made at a later date.

Consumer Financial Protection Bureau

A federal agency in the United States responsible for consumer protection in the financial sector.

Regulatory Action

Steps or interventions taken by a government agency to enforce rules, regulations, or laws, usually to protect public interest.