What Do Economists Use the Term "Ceteris Paribus" to Indicate

question 140

Multiple Choice

What do economists use the term "ceteris paribus" to indicate?

• A) Supply and demand are in balance.
• B) Their conclusions are based on normative rather than positive economic analysis.
• C) Other things are assumed to remain constant.
• D) The analysis is True for the individual but not for the economy as a whole.

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Definitions:

Equity Securities

Financial instruments representing ownership in a corporation, such as stocks, which provide a claim on part of the company's assets and earnings.

Cash Dividends

Distributions from a corporation to its owners, typically in the form of profit payouts.

Brokerage Fees

Charges levied by a broker for facilitating transactions between two parties, such as buying or selling stocks.

Available-For-Sale Security

A financial investment not classified as held-for-trading or held-to-maturity, which can be sold in the short term for cash.