Which of the following statements best illustrates the form of an economic theory?
A) If A, then B.
B) If A, then B, when C, D, E, and F are also changing.
C) A, B, and C all occurred at the same time.
D) If A, then B, other things held constant.

Question

Quizplus · Accepted Answer

Economic theories typically involve a cause-and-effect relationship between variables, and the phrase "other things held constant" (or ceteris paribus) is used to indicate that the relationship between A and B is being isolated and tested, without being influenced by other factors.

Which of the Following Statements Best Illustrates the Form of an Economic