As soon as a mayor announced his/her 'get tough on crime' policy on New Year's day, criminals got scared and the crime rate went down. Suppose that the lower crime rate was actually caused by freezing cold temperatures in Januaryit was just too cold for anybody to be out robbing other people. Which fundamental hazard of the economic way of thinking did the mayor make?
a. believing that what's good for one person is good for the whole group (the fallacy of composition)
b. failing to take into account the benefits of crime (the payoff fallacy)
c. believing that association is the same as causation
d. failing to understand the difference between positive and normative economics.
Question 2
Someone notices that sunspot activity is high just prior to recessions and concludes that sunspots cause recessions. This person has:
a. confused association and causation.
b. misunderstood the Ceteris paribus assumption.
c. used normative economics to answer a positive question.
d. built an untestable model.
Effects of Therapy for Stuttering A functional MRI scan shows regions of the superior temporal lobe
On March 25, 1911, as scores of young factory girls leaped to their deaths from the eighth, ninth, a
Average Number of Days per Year with Thunderstorms
Chelsea Donahue has a 20-year home mortgage of 78,000 at 7.50% interest and will pay ...
Charlie Stone wants to retire in 30 years, and he wants to have an annuity of $1000 a year for ...
Analysts expect Virtucon to make payouts of $8.7643B at the end of this year. Assume that all ...