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:

Avoidance-avoidance

A psychological conflict that arises when an individual must choose between two unattractive options or outcomes.

Multiple Approach-avoidance

A conflict involving a choice between two or more options, each having both desirable and undesirable aspects leading to vacillation between them.

Future of the Nation

Considerations and predictions about the development, prosperity, and well-being of a country in the coming years.

Area of Concern

A domain or issue that requires attention or is regarded as a subject requiring intervention or oversight.