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True or false: While constructing theories, economists use the ceteris paribus assumption. This assumption implies that factors other than those being considered do not change.
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Solution: True

Explanation: The assumption of "ceteris paribus", in economics is derived from a Latin phrase which means "with other things the same" or "other things being equal or held constant," is vital in causation determination. It assists to isolate multiple independent variables affecting a dependent variable. It means that the economist in the model can hold all variables constant and can also tinker with them one at a time.

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