In building a model the assumption that allows economists to study only the factors being analyzed is the
A) rationality assumption.
B) ceteris paribus assumption.
C) the self-interest assumption.
D) the scarcity assumption.

Question

Quizplus · Accepted Answer

The ceteris paribus assumption (meaning "all other things being equal") allows economists to isolate the effects of specific factors being analyzed by assuming that all other factors are held constant. This assumption helps simplify economic models and allows economists to study the relationships between fewer variables at a time.

In Building a Model the Assumption That Allows Economists to Study