Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Determination of Income and Employment

Question:

In the determination of a particular variable, the assumption of "ceteris paribus" stands for.

Options:

Other variables remain constant.

One variable remain constant.

Other variables remain flexible.

One variable remain flexible.

Correct Answer:

Other variables remain constant.

Explanation:

The correct answer is Option (1) → Other variables remain constant.

The Latin phrase "ceteris paribus" means "all other things being equal" or "holding other variables constant."

In economics, it is used to isolate the effect of one variable on another by assuming that all other relevant factors remain unchanged.

For example, when we say "if the price of a good increases, its demand falls, ceteris paribus," we mean the demand falls assuming no change in income, tastes, or prices of related goods.