Question

Compared to those people who prefer to play it safe, individuals who are more comfortable taking risks are more likely to reach the top of the income distribution, or to hit the bottom, ceteris paribus.

Answer 1

The answer is true. In economics, the supposition of ceteris paribus, a Latin expression that means "with other things the same" is significant in defining causation. It helps separate numerous independent variables touching a dependent variable. Causal relationships among financial variables are hard to separate in the real world, ever since most economic variables are typically affected by more than one cause, but reproductions often hinge on a supposition of independent variables.