The term "ceteris paribus" means that:
A)everything is variable.
B)all variables except those specified are constant.
C)no one knows which variables will change and which will remain constant.
D)what is true for the individual is not necessarily true for the whole.

Question

The term "ceteris paribus" means that:
A)​everything is variable.
B)​all variables except those specified are constant.
C)​no one knows which variables will change and which will remain constant.
D)​what is true for the individual is not necessarily true for the whole.

Quizplus · Accepted Answer

Ceteris paribus means "all other things being equal," which implies that all variables except the ones being specified are held constant. In other words, the effect of the specified variable is isolated and measured against a constant backdrop. Thus, option B is the correct choice. Options A, C, and D are incorrect.

The Term "Ceteris Paribus" Means That