Question

Module 4 Assignments: Economic Goal posting #3 AND Assignment 1 - Ceteris Panbus o Answer the following questions Provide your opinion and analysis and justify your responses 1. What is the concept of Ceteris Paribus? 2. In this age of instantaneous communication (due to the proliferation of Information and Communication Technologies) is this fundamental law of economies in need of being reworked if so, why? If not, why not? 3. Are there any industrial sectors where economic forecasting is still viable based on this assumption (the economic forecasts are valid assuming that all things remain the same) or has our information society made this fundamental assumption relevant? You will have to look beyond your textbook to find a definition of Ceteris Paribus. Your answer (no more than 1000 words) is sent to me via the 'Assignment under the 'Activites' tab by midnight of the Sunday of Week 4 (See scheduleAttachments OK here Activate Windows Recommended Review Questions for Chapter 3: is computer is....html A 12.41 A Type here to search

Answer 1

Ceteris paribus means other conditions remain same and all other factors remain unchanged to specific situation.

The fundamental law of economic needs major revamp as they are outdated and business headwinds and challenges are dynamic and magnanimous than earlier making concept of ceteris paribus slightly vague.

There are practically no sectors wherein this concept is viable in todays age and instantaneous communication and thus this concept is largely irrelevant as we see how Telecommunications market in USA has submerged into Oligopolistic market with consolidation keeping geopolitical tensions as constant or ceteris paribus. Technically geopolitical tensions should halt growth but we do not witness such empirically.

Similarly in India, Telecommunications market has evolving into Oligopolistic market from perfect competition keeping government laws as same.

On contrary, market should have multiple players when government laws remain intact.

This makes the definition and application of ceteris paribus ambiguous and lacks transparency.