--%>
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 : Laissez-faire philosophy of government

    As per to the laissez-faire philosophy of government,: (1) economy works best while all investment decisions are centralized. (2) market system works best along with only minimal government intervention. (3) government must be restricted to stabilizin

    		•
  • Q : Problem regarding to intermediaries and

    Society gains from the activities of intermediaries which succeed within: (1) falling uncertainty and transaction costs for last consumers. (2) arbitrating strikes and defending workers’ rights. (3) creating productive jobs for unskilled workers

    		•
  • Q : Characterized contestable markets

    Industries that are described as "contestable": (w) will experience long-run economic profits equal to zero. (x) are difficult for firms to enter, but not to exit. (y) are difficult for firms to exit, but not to enter. (z) will charge prices greater t

    		•
  • Q : Elucidate state expenditures and

    Elucidate state expenditures and receipts for all states in 1998?

    		•
  • Q : What does financial leverage specify

    What does financial leverage specify? And also states its limitations?

    		•
  • Q : Elucidate the gains that have occurred

    Elucidate the gains that have occurred using the resources as before specialization?

    		•
  • Q : Exchange and Specialization I have a

    I have a problem in economics on Exchange and Specialization. Please help me in getting the right answer from the following question. Sarah the wheat farmer would be most probable to trade for fruit from the Kathy's orchard if: (i) Sarah's opportunity

    		•
  • Q : Describe the Slope of a nonlinear curve

    Describe the Slope of a nonlinear curve?

    		•
  • Q : Public policies for low-income Fuel

    Fuel stamp programs which subsidize heating oil purchases through low-income households encourage those families to: (w) create more income by working. (x) particularly conserve on their use of fuel. (y) live along with less purchasing power. (z) subs

    		•
  • Q : Illustrate Rational Behaviour of

    Illustrate Rational Behaviour of Economic Perspective?

    		•