Asked by
celina navarrete
on Dec 12, 2024Verified
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.
Ceteris Paribus
A Latin phrase meaning "all other things being equal," used in economics to analyze the effect of one variable on another while holding other relevant factors constant.
Economic Variables
Quantitative measures that represent a characteristic of the economy or a part of the economy, influencing or describing economic activity.
Positive Economic Analysis
An objective approach to economics that focuses on describing and explaining economic phenomena without making normative judgments.
- Understand the concept of ceteris paribus and its application in economic analysis.
Verified Answer
TF
Learning Objectives
- Understand the concept of ceteris paribus and its application in economic analysis.