Which Statement Uses the Term Ceteris Paribus Correctly

question 166

Multiple Choice

Which statement uses the term ceteris paribus correctly?

• A) If you exercise regularly,you will be healthier,ceteris paribus.
• B) Blue is to green,ceteris paribus,as red is to purple.
• C) Most people consider Sunday to be the first day of the week,ceteris paribus.
• D) Interest rates usually rise in October,ceteris paribus.
• E) a and d

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Definitions:

Average Accounting Returns

A financial ratio that measures a firm's average profitability relative to its investment, typically calculated as net income divided by average book value of investment.

Project

A systematically planned group of tasks that are interdependent, meant to be executed within a fixed timeframe whilst respecting certain financial and additional limits.

Mutually Exclusive Projects

Projects in which the acceptance of one proposal means the others cannot be pursued, requiring a choice to be made.

Capital Budgeting Analyses

The process of evaluating investment opportunities and deciding which capital expenditures will provide the most value over time.