What Is The Most Popular Movie Of All Time?: Teaching The Importance Of Ceteris Paribus

Abstract

Students often have difficulty understanding the importance of distinguishing between real and nominal prices, or more generally, why ceteris paribus conditions are important. We exploit students interests in popularity to teach the nominal/real distinction, and the importance of adjusting for inflation, population, and income levels. We illustrate the importance of these topics by asking, What is the most popular movie of all time?