--%>
Assignment Help - homework help

Other things equal assumption helps isolate key economic

Explain the statement: “The other things equal assumption helps isolate key economic relationships.”?

E

Expert

Verified

Natural scientists such as chemists or physicists can much more easily control experiments and test with great precision an assumed relationship between two variables.  Economists have a much more difficult time trying to isolate key economic relationships.  Nonetheless, the “other things equal assumption” is extremely important. Economists must test their theories using real world data, generated by the actual operation of the economy. Under these conditions “other things” do change and despite sophisticated statistical techniques, controls are less than perfect.  As a result economics principles are less precise than those of laboratory sciences.

   Related Questions in Business Economics

  • Q : Argument by Adam Smith for a true

    Within the Wealth of Nations, argument by Adam Smith such that a nation’s true wealth is its capability to: (1) obtain stocks of financial capital. (2) inspire its people’s courage and diligence. (c) give

    		•
  • Q : Define Average cost and Marginal cost

    Briefly explain the term Average cost and Marginal cost?

    		•
  • Q : Examples and Applications of

    What are the Examples and Applications of International Trade?

    		•
  • Q : Determine equilibrium prices market

    The new supply and demand curves within University City were S0 and D0, before the county commission imposed a $3 per six-pack excise tax upon beer. The new equilibrium quantities of six-packs sold per month and equilibrium prices, respectively,

    		•
  • Q : Increase the overall effectiveness of

    How the government can increase the overall effectiveness of the market system?

    		•
  • Q : Contestable Markets The least probable

    The least probable of the given industries to be a contestable market is: (1) video rentals. (2) pizza delivery. (3) cable television. (4) trucking. Can someone explain/help me with best solution about problem of <

    		•
  • Q : Write short note on Demand Write short

    Write short note on Demand?

    		•
  • Q : Determine relative price when two

    When the prices for doughnuts and croissants are $.50 and $1 correspondingly: (w) the opportunity cost for one doughnut is two croissants. (x) this is better to buy two doughnuts than one croissant. (y) one croissant will make Pierre twice as happy as one doughnut. (z

    		•
  • Q : Expiation of Economists for Economic

    Please help me to solve the problem of economic that is given below: Economists describe economic costs as like: (w) money outlays. (x) accounting cost. (y) opportunity cost. (z) v

    		•
  • Q : Calculate the short-run profit or loss

    A perfectly competitive firm produces 3,000 units of a good at a total cost of $36,000. The cost of each good is $10. Calculate the firm's short-run profit or loss. w) loss of $6,000. x) profit of $6,000. y profit of $30,000. z) There is insufficient

    		•