When Economists Want to Hold a Number of Factors Constant

question 6

Multiple Choice

When economists want to hold a number of factors constant, they are demonstrating which of the following expressions?

• A) Positive economics model.
• B) Consumer sovereignty.
• C) Ceteris paribus .
• D) Normative economics.

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Definitions:

Macroeconomics

A branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole, including unemployment, inflation, and economic growth.

Decision-Making Units

Groups or individuals within an organization that have the authority and responsibility to make choices that affect the organization's operations.

Public Policy Implications

The effects or outcomes that governmental policies have on society, including economic, social, or environmental impacts.

Budget Line

A graphical representation of all possible combinations of two goods that a consumer can afford given their income and the prices of the goods, illustrating the concept of trade-offs.