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

question 237

Multiple Choice

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

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

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Definitions:

Taxes

Compulsory financial charges imposed by a government on individuals or entities to fund public services and infrastructure.

Shareholder

An individual or institution that owns one or more shares of stock in a public or private corporation, thus having a financial interest in its profitability and governance.

Corporate Management

The group of individuals responsible for overseeing the operational and strategic direction of a corporation.

Shareholders

People or organizations that possess at least one share in a corporation, thereby holding a stake in the company's ownership.