The purpose of the ceteris paribus assumption used in economic analysis is to:
A. Avoid making normative statements
B. Distinguish macroeconomics from microeconomics
C. Make sure that all relevant factors are considered
D. Focus on the effect of a single factor on a certain variable
Answer: D
You might also like to view...
Which of the following mathematical expressions represents the equation of a straight line with a slope of zero at all points on a graph with Y on the vertical axis and X on the horizontal axis?
a. Y = a + X b. X = bY c. X = a d. Y = a
The Laffer curve illustrates that
A) there are two tax rates at which zero tax revenues are raised. B) a decrease in tax rates can cause an increase in tax revenues. C) an increase in tax rates can cause an increase in tax revenues. D) an increase in tax rates can cause a decrease in tax revenues. E) all of the above