Economists use the ceteris paribus assumption primarily in order to
A) make their analyses easier for them to conduct.
B) designate what they believe is the correct relationship between two variables.
C) explain why people sometimes consume more of a good when its price rises.
D) explain why those things that come first do not necessarily cause those things that come later.
E) designate the difference between normative and positive economics.
B
You might also like to view...
What do developing countries want regarding agriculture in the Doha Round?
What will be an ideal response?
The equation MRS = 1 + r means that ________
A) consumers prefer to avoid fluctuations in consumption B) at the margin, consumption grows at the real interest rate C) any movement along the budget constraint would cause a decrease in the consumer's utility D) consumer utility is a positive function of the real interest rate
Economics: a. is a narrowly focused discipline
b. is a broad-ranging, problem-solving discipline. c. concerns itself only with monetary decisions. d. says very little about "everyday life."
In a free market for rental housing, the average rental rate
a. includes a large amount of economic rent. b. includes zero economic rent. c. is entirely economic rent, since rental housing is fixed in supply. d. is about 10 percent economic rent.