When an economist invokes the ceteris paribus statement, what is she doing?
A) indicating that a mathematical statement is completed
B) assuming that an event is about to happen
C) assuming that all other factors affecting an event are not changing
D) indicating that the outcome of an event is uncertain

Question

Quizplus · Accepted Answer

The term "ceteris paribus" is a Latin phrase meaning "all other things being equal." When an economist uses this term, they are assuming that all other variables except the one under consideration remain constant. This helps in isolating the effect of the variable being studied.

When an Economist Invokes the Ceteris Paribus Statement, What Is