The "Other-Things-Constant" Assumption

question 128

Multiple Choice

The "other-things-constant" assumption:

• A) allows an economist to make useful predictions.
• B) is a prediction.
• C) applies only to consumers' decisions and not to those of firms.
• D) forces an economist to ignore reality, where things are constantly changing.
• E) implies rational self-interest on the part of all economic actors.

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Definitions:

Eyewitness Testimony

Evidence provided by individuals who witnessed an event or crime, relying on their personal observations.

Absolutely Certain

The state of being completely confident and without a doubt about something.

Laboratory Research

Scientific experimentation and analysis conducted in a controlled, indoor environment equipped with specific tools and equipment.

Real-Life Events

Actual occurrences in one’s day-to-day life, as opposed to hypothetical or fictional scenarios, that can influence emotions, behavior, and health.