The purpose of the ceteris paribus assumption used in economic analysis is to:
A) make sure that all relevant factors are considered.
B) avoid making normative statements.
C) avoid making positive statements.
D) restrict the analysis to the effect of a single economic factor.

Question

Quizplus · Accepted Answer

The ceteris paribus assumption is used to restrict the analysis to the effect of a single economic factor. This allows economists to isolate and study the impact of a specific variable on the outcome, without the interference of other variables. It does not consider all relevant factors, and it is not meant to make normative or positive statements.

The Purpose of the Ceteris Paribus Assumption Used in Economic