Discussion:
1.Ceteris paribus, as applied in demand theory, means
accounting for all possible simultaneous changes.
holding constant all factors that affect demand except one.
observing the real world.
holding technology and resource prices constant.
holding one input constant while changing the other input
2.Which of the following would be described as capital by an economist?
Government bonds
Corporate bonds
Petroleum reserves owned by a corporation
Common stocks traded on a national exchange
The power lift in a service station
3.If there is a need to increase the quantity and supply of oil, the most effective way to get it quickly is to
improve technology.
reduce the prices of the resources that produce oil.
increase the price of oil.
put a limit on the price of oil.
ban imports.