Economists Use the Term "Ceteris Paribus" to Indicate That

question 60

Multiple Choice

Economists use the term "ceteris paribus" to indicate that:

• A)​the analysis is true for the individual but not for the economy as a whole.
• B)​supply and demand are in balance.
• C)​their conclusions are based on normative rather than positive economic analysis.
• D)​other things are assumed to remain constant.

---

Definitions:

Direct Labor-Hours

The total number of work hours spent by employees who are directly involved in the manufacturing process.

Traditional Costing

An accounting method that allocates overhead costs to products based on a predetermined rate, often labor or machine hours.

Activity-Based Costing

An accounting method that identifies and assigns costs to specific activities, thereby more accurately reflecting the costs of products or services.

Overhead Rate

The total of indirect costs of production compared to a base activity measure, like labor hours, used to assign costs to products.