The Other-Things-Constant Assumption

question 27

Multiple Choice

The other-things-constant assumption:

• A)allows the economist to make useful predictions.
• B)is a prediction.
• C)applies only to consumers' decisions and not to those of firms.
• D)forces the 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:

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, widely used in finance to assess the volatility of an investment.

Volatility

Volatility refers to the degree of variation of a trading price series over time, typically measured by the standard deviation of returns.

Section Modulus

A geometric property of a cross section, relevant in the design and analysis of beams, that reflects its capacity to resist bending.

Tensile Strength

The highest stress that a material can withstand without separating; expressed in psi. In steels, tensile strength typically exceeds yield strength by about 10 percent.