When Economists Use the Term Ceteris Paribus, They Indicate

question 101

Multiple Choice

When economists use the term ceteris paribus, they indicate

• A) the causal 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 factors are assumed to be constant.
• D) their conclusions are based on normative economics rather than positive economic analysis.

---

Definitions:

Labor Force

The total number of people employed or actively seeking employment in a country or region.

Labor Force

The total number of people employed or actively seeking employment in a given economic territory or nation.

Structurally Unemployed

individuals who are unemployed due to structural changes in the economy that make their skills or industries obsolete.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, typically used as an indicator of inflation.