When Economists Use the Term Ceteris Paribus, They Are Indicating

question 172

Multiple Choice

When economists use the term ceteris paribus, they are indicating that

• A) the 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 variables except the ones specified are assumed to be constant.
• D) their conclusions are based on normative economics rather than positive economic analysis.

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Definitions:

Continuous Random

Pertains to a random variable that can take an infinite number of possible values in a continuous range.

Value In Interval

Refers to a number or a measurement lying within a specific range defined by a lower and upper boundary.

Concept

A mental grouping of similar objects, events, ideas, or people.

Automobile

A wheeled motor vehicle used for transportation, typically powered by an internal combustion engine or electric motor.