The ceteris paribus assumption is important in economics because
A) all empirical data are equal.
B) it would be impossible to relate the effects of changes in one variable on another without holding some variables constant.
C) economic data move very slowly over time and so they can always be considered constant.
D) models are always complex and require as many variables as possible.
Correct Answer:
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Q187: The assumption that "other things are constant"
Q189: An economic model should capture
A) the essential
Q190: Holding all variables constant but one and
Q194: Which of the following statements is TRUE?
A)
Q196: Why is economics called an empirical science?
A)because
Q197: Ceteris paribus means
A)making all the necessary changes.
B)other
Q200: One problem with constructing a perfectly complete
Q202: Economic models are
A)always based on laboratory methods
Q203: To test their theories, economists usually have
Q212: In an economic model, assumptions
A) must be
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