The Process of Examining a Change in One Variable in a Model

question 129

Multiple Choice

The process of examining a change in one variable in a model while assuming that all the other variables remain constant is called:

• A) external factors.
• B) ceteris paribus.
• C) normative analysis.
• D) positive analysis.
• E) faulty assumptions.

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Definitions:

Transfer of Income

Transfer of income involves reallocating earnings from one party to another, often through government policies such as subsidies or taxes.

Positive Economics

A branch of economics that seeks to describe and explain the behavior of the economy or economic phenomena without making judgments on whether the outcomes are good or bad.

Income Distribution

The way in which total income is shared among the population or different groups within the society.

In-kind Benefits

Non-cash assistance provided by governments or organizations, such as food, housing, or medical services, aimed at improving welfare.