What Underlying Assumption Is the Danger of Using Trend Analysis

question 29

Multiple Choice

What underlying assumption is the danger of using trend analysis?

• A) Trends only last a short time and then change radically.
• B) Trend characteristics remain the same, even if outside conditions change.
• C) A change in the environment enhances characteristic relationships.
• D) Future events will continue in the same manner as they did in the past.

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Definitions:

Free Trade

The absence of tariffs, duties, or trade barriers between countries, allowing for the unrestricted exchange of goods and services.

Sold Quantity

The total number of units of a product sold within a specific time period.

Import Quota

A specific limit on the quantity of a particular good that can be imported into a country to protect domestic industries from foreign competition.

Protective Tariff

A tax imposed on imports to protect domestic industries from foreign competition by making imported goods more expensive.