The Assumption That Nothing Changes Except the Factor Being Studied

question 71

Multiple Choice

The assumption that nothing changes except the factor being studied is

• A) the ceteris paribus assumption.
• B) the rationality assumption.
• C) positive economic analysis.
• D) normative economic analysis.

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Definitions:

Next-Best Alternative

The best option available to someone after the top choice is taken away, frequently referenced in the context of opportunity cost.

Willie Nelson

A renowned American musician, actor, and activist, known for his contributions to country music.

Consumer Surplus

The split between the sum consumers are willing to pay for a good or service and the sum they finally pay.

Consumer Surplus

The discrepancy between the price consumers are inclined to pay for a product or service and the actual price paid.