What do economists aim to achieve when they use the other-things-constant assumption?
A) to make useful predictions
B) to focus on the role of incentives
C) to focus only on consumers' decisions, and NOT on those of firms
D) to ignore reality, where things are constantly changing

Question

What do economists aim to achieve when they use the other-things-constant assumption?  
A) to make useful predictions 
B) to focus on the role of incentives 
C) to focus only on consumers' decisions, and NOT on those of firms 
D) to ignore reality, where things are constantly changing

Quizplus · Accepted Answer

Economists use the other-things-constant assumption in order to isolate the relationship between two variables and make useful predictions about how changes in one variable will affect the other.

What Do Economists Aim to Achieve When They Use the Other-Things-Constant