What do economists mean when they use the term 'ceteris paribus'?
What will be an ideal response?
All other variables except the ones specified are assumed to be constant.
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If the Gini coefficient for the United States is 0.47 and that for India is 0.36, which of the following statements is true?
a. The U.S. being an industrialized nation has a lower income inequality than India. b. The Lorenz curve for the U.S. lies above the Lorenz curve for India. c. India, in spite of being a developing nation, has lesser income inequality than the U.S. d. The Lorenz curve for India would coincide with the line of perfect equality. e. The distribution of income in both the economies are equal.
Since people respond to incentives, we would expect that, if the average salary of accountants increases by 50% while the average salary of teachers increases by 20%, then
a.fewer students will take degree courses in accounting and more will take education courses. b.fewer students will take degree courses in education and more will take accounting courses. c.fewer students will attend university. d.none of these answers.
This table represents the revenues faced by a monopolist.PriceQuantity SoldTotal RevenueAverage RevenueMarginal Revenue$1,0001$1,000 $9002$1,800 $8003$2,400 $7004$2,800 $6005$3,000 $5006$3,000 $4007$2,800 Using the information in the table shown, the marginal revenue for the 4th unit is:
A. That cannot be calculated from the information given. B. the same as that of the 3rd unit. C. higher than that of the 3rd unit. D. lower than that of the 3rd unit.
The marginal product of labor is the additional:
A. wage paid for an additional worker employed. B. output produced by one more worker. C. labor employed to produce one more unit of output. D. wage paid for an additional hour of work.