Economists Use the Ceteris Paribus Assumption Primarily in Order to

question 127

Multiple Choice

Economists use the ceteris paribus assumption primarily in order to

• A) make their analyses easier for them to conduct.
• B) designate what they believe is the correct relationship between two variables.
• C) explain why people sometimes consume more of a good when its price rises.
• D) explain why those things that come first do not necessarily cause those things that come later.
• E) designate the difference between normative and positive economics.

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Definitions:

Rational-Legal Authority

A concept in sociology that denotes a form of leadership in which authority is largely tied to legal rationality, legal legitimacy, and bureaucracy.

Bureaucratic Structure

An organizational design characterized by a hierarchy of authority, a clear division of labor, explicit rules and procedures, and impersonality in managerial decisions.

Capitalism

An economic system characterized by private or corporate ownership of capital goods, investments determined by private decision, and prices, production, and the distribution of goods determined mainly by competition in a free market.

Emotional Labor

The process of managing feelings and expressions to fulfill the emotional requirements of a job, often in service-oriented professions.