When economists use the term ceteris paribus, they indicate
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 factors are assumed to be constant.
D) their conclusions are based on normative economics rather than positive economic analysis.

Question

Quizplus · Accepted Answer

Ceteris paribus means "all other things being equal" or "holding all other variables constant." Therefore, when economists use ceteris paribus, they assume that all other factors impacting the analysis are held constant, allowing for a clearer examination of the relationship between two specific economic variables.

When Economists Use the Term Ceteris Paribus, They Indicate