Economies as a social science (1.1.1)

Question 1

What is Ceteris Paribus?

Answer 1

‘All other things remain equal’-An effect one variable has on another provided all other variables stay the same.

Question 2

What’s an example of the use of Ceteris Paribus?

Answer 2

When there is a change in income, demand will shift, ceteris paribus

Question 3

Why is it difficult to set up experiments to test hypothesis?

Answer 3

This is because when data is collected other variables are always changing so its difficult to decide whether or not evidence supports or disagrees with a hypothesis.