The Purpose of the Ceteris Paribus Assumption Is to Allow

question 58

Multiple Choice

The purpose of the ceteris paribus assumption is to allow economists to

• A) determine the relationship among several variables.
• B) determine the impact of several variables on another variable.
• C) isolate the impact of one variable on several variables.
• D) isolate the relationship between two variables.

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Definitions:

Studying Economics

The discipline of learning about how societies use scarce resources to produce valuable commodities and distribute them among different people.

Studying Accounting

The process of learning about and understanding the theories, principles, and practices related to managing and reporting financial information.

Marginal Benefits

The extra advantage gained from a single unit rise in a specific action.

Marginal Costs

The increase in cost resulting from the production of an extra unit of a good or service.