Economists use the term "ceteris paribus" to indicate that:
A)the analysis is true for the individual but not for the economy as a whole.
B)supply and demand are in balance.
C)their conclusions are based on normative rather than positive economic analysis.
D)other things are assumed to remain constant.

Question

Economists use the term "ceteris paribus" to indicate that:
A)​the analysis is true for the individual but not for the economy as a whole.
B)​supply and demand are in balance.
C)​their conclusions are based on normative rather than positive economic analysis.
D)​other things are assumed to remain constant.

Quizplus · Accepted Answer

"Ceteris paribus" means "all other things being equal" or "other things remaining constant". Therefore, when economists use this term, they are assuming that all other relevant factors are holding steady, allowing them to isolate the effects of a specific variable or change.

Economists Use the Term "Ceteris Paribus" to Indicate That