When economists use the term ceteris paribus, they are indicating that
a. the relationship between two economic variables cannot be determined.
b. the analysis is true for the individual but not for the economy as a whole.
c. all other variables except the ones specified are assumed to be constant.
d. their conclusions are based on normative economics rather than positive economic analysis.
C
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Suppose rice can be produced in China at a lower cost than in Thailand, while tuna can be produced in Thailand at a lower cost than in China. International competition will
a. destroy the rice market in both countries b. drive China to specialize in rice and Thailand to specialize in tuna c. drive Thailand to specialize in rice and China to specialize in tuna d. cause both countries to reject international specialization e. result in lower total output of rice and tuna
Since the end of World War II, corporate income taxes have accounted for
a. an increasing share of federal revenue. b. a steady share of federal revenue. c. a declining share of federal revenue. d. a rising share of revenue until 1980, and then a falling share.