Exhibit 2-3

-Ceteris paribus means
A)that rational self-interest is being assumed.
B)"all variables are independent."
C)that no other assumptions are being made.
D)"other things being equal."
E)"all relationships are inverse."

Question

Exhibit 2-3
 
-Ceteris paribus means
A)that rational self-interest is being assumed. 
B)"all variables are independent." 
C)that no other assumptions are being made. 
D)"other things being equal." 
E)"all relationships are inverse."

Quizplus · Accepted Answer

Ceteris paribus means "other things being equal." It is often used in economics to isolate the effect of a specific variable by assuming that all other variables are constant or unchanged.

Exhibit 2-3 -Ceteris Paribus Means