Economists try to isolate the effect of one variable at a time.They do so by
A) holding all other relevant factors the same.
B) imagining a real world.
C) assuming that every economic variable changes simultaneously.
D) keeping all variables constant.
E) looking only at decisions made on the margin.

Question

Quizplus · Accepted Answer

Econometrics involves identifying the impact of a particular variable on the outcome of interest while keeping all other relevant factors constant, which is known as holding other factors constant or ceteris paribus assumption. The reason for this is to isolate the effect of one variable from other potential causes of the outcome.

Economists Try to Isolate the Effect of One Variable at a Time.They