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:

Income

The monetary payment received for goods or services, or the profit earned from an investment, important for analyzing economic welfare and distribution.

Nuts

Nuts are edible seeds typically encased in a hard shell, often consumed for their nutritional content, including proteins, fats, and various minerals.

Engel Curve

A graph showing how household expenditure on a particular good or service varies with household income.

Normal Good

A good for which demand increases as the income of an individual increases, holding other factors constant.