An economic forecast:
a. will always be true.
b. is more reliable than a weather forecast.
c. will never provide valuable information.
d. should not be relied upon to predict economic events.
e. is always based upon a Ceteris paribus condition.
Question 2
The term Ceteris paribus means that:
a. the model includes all important variables occurring in the real world.
b. all factors which influence the event are changing at the same time.
c. one influence is changing and everything else is being held constant.
d. the consumer is king.
