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

question 254

Multiple Choice

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

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

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Definitions:

Level Of Demand

An assessment of the quantity of a product or service that consumers are willing and able to purchase at various prices over a given period.

Capacity Decisions

Refers to determinations made by a company about the amount of production resources available, affecting its ability to meet demand.

Technological Concerns

Issues related to the implementation, impact, and management of technology within an organization or society.

Demand Forecasts

Projections of a company’s sales for each time period in the planning horizon.