Which of the Following Statements Is the Best Example of the Term

question 177

Multiple Choice

Which of the following statements is the best example of the term ceteris paribus?

• A)An increase in the budget surplus after an increase in tax rates implies that tax rate increases cause budget surpluses.
• B)The government budget surplus was $200 billion in 2000 because the economy was growing.
• C)More money should be spent on cleaning up the environment.
• D)When studying the effects of a budget deficit, an economist must take account of all the factors involved.
• E)An economist holds other factors constant when he examines the relationship between tax rates and tax revenues.

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Definitions:

Prolonged

Continuing for a long time or longer than usual.

Highly Political

Describes environments or situations where power dynamics, influence, and strategic maneuvers play a significant role in decision-making and outcomes.

Compatible Interests

Interests or hobbies that align well between individuals or groups, facilitating cooperation or shared enjoyment.

Ecotourism

A form of sustainable travel to natural areas that conserves the environment and improves the well-being of local people.