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.
The Black Death spread over much of Europe in a three-year period in the middle of the fourteenth ce
This 19-year-old in Wisconsin was given a reduced jail sentence for holding this sign in front of ...
Crime Control in America: What Works?, 4th Edition
Seven students have applied for merit scholarships. This year 3 merit scholarships were ...
Chelsea Donahue has a 20-year home mortgage of 78,000 at 7.50% interest and will pay ...
Types of policy