The ceteris paribus assumption is employed in economic analysis, in order to:

A. State economic goals
B. Simplify the complex world
C. Evaluate an economic system
D. Approximate real-world conditions

Answer: B

Economics

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The components of consumption expenditures include all of the following except

A) nondurable goods consumption. B) durable goods consumption. C) government consumption. D) services.

Economics

Which of the following should be expected if the tax for a certain good increases?

A. price of the good increases. B. the composition of the commodity bundle is distorted. C. the budget line pivots out. D. the composition of the commodity bundle is distorted and the price of the good increases.

Economics