The purpose of the ceteris paribus assumption used in economic analysis is to:
A. Avoid making normative statements
B. Distinguish macroeconomics from microeconomics
C. Make sure that all relevant factors are considered
D. Focus on the effect of a single factor on a certain variable
Answer: D
You might also like to view...
Economic growth can be defined as a percentage increase in
A) per capita real GDP. B) nominal GDP. C) consumption by households. D) real GDP.
In the very long run, the level of consumption per worker can grow continually if
A) the saving rate continually falls. B) the population growth rate continually rises. C) productivity continually improves. D) the depreciation rate continually rises.
Which of the following is true? a. Poverty, defined as the lack of a minimum level of consumption, could be potentially eliminated, but scarcity could not. b. Scarcity could be potentially eliminated but poverty could not
c. Both scarcity and poverty could be potentially eliminated. d. Neither scarcity nor poverty could be potentially eliminated.
The typical American family spends about ____ percent of its budget on goods, and the remainder on services
a. 22 b. 34 c. 68 d. 74