Which of the Following Statements Is Most Likely to Be

question 123

Multiple Choice

Which of the following statements is most likely to be true about the risks of doing business in a country?

• A)Political risk is low in countries that contain more than one ethnic nationality.
• B)Economic risks are independent of political risk.
• C)One visible indicator of economic risk is the level of business and government debt in the country.
• D)One visible indicator of legal risk tends to be a country's inflation rate.
• E)Political risk tends to be low in those countries that have high inflation and falling living standards.

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Definitions:

Post Hoc

A logical fallacy that assumes a causal relationship between two events simply because one event occurred after the other.

Inductive Reasoning

A logical process in which multiple premises, all believed true or found true most of the time, are combined to obtain a specific conclusion.

Tattoo

A form of body modification where a design is made by inserting ink, dyes, and pigments, either indelible or temporary, into the dermis layer of the skin to change the pigment.

Economic Stability

A state where an economy experiences stable growth, low inflation rates, and low unemployment rates, contributing to overall economic health.