When economists use the term "ceteris paribus," they mean that:
A)the causal relationship between two economic variables cannot be determined.
B)the analysis is true for the individual but not for the economy as a whole.
C)all other variables except the ones specified are assumed to be constant.
D)their conclusions are based on normative rather than positive economic analysis.

Question

When economists use the term "ceteris paribus," they mean that:
A)​the causal relationship between two economic variables cannot be determined.
B)​the analysis is true for the individual but not for the economy as a whole.
C)​all other variables except the ones specified are assumed to be constant.
D)​their conclusions are based on normative rather than positive economic analysis.

Quizplus · Accepted Answer

When economists use the term "ceteris paribus," they assume that all other variables except the ones specified are held constant while analyzing the relationship between two economic variables. This is done to isolate the impact of the variables being studied and to simplify the analysis.

When Economists Use the Term "Ceteris Paribus," They Mean That