Q236
Ceteris Paribus means
A.
Other things remaining same
AnswerB.
All variables are independent
C.
Enable economists to simplify reality
D.
That no other assumptions are made
Answer: Option A
Solution
Answer: Option A
Solution:
Ceteris Paribus means other things remaining same. The Latin phrase ceteris paribus – literally, “holding other things constant” – is commonly translated as “all else being equal.” A dominant assumption in mainstream economic thinking, it acts as a shorthand indication of the effect of one economic variable on another, provided all other variables remain the same.