The term Ceteris paribus means that:
a. everything is changing.
b. all other things remain unchanged.
c. no one knows which variables will change and which will remain constant.
d. the basic principle of economics do not apply to the case being considered.
b
Economics
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The "all other things unchanged" assumption is useful because it:
A) states the main economic objectives. B) is a vehicle for determining whether a particular outcome is "good" or "bad.". C) helps to approximate real-world conditions. D) helps to restrict analysis to the effect of a single economic factor.
Economics
Refer to Figure 2-8. What is the opportunity cost of 80 dozen orchids?
A) 0 roses B) 2.5 dozen roses C) 40 dozen roses D) 200 dozen roses
Economics