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.
Age-Crime Relationship in (a) 1842 and (b) 1992
On May 15, 1916, after deliberating for one hour, an all-white jury in Waco, Texas, found seventeen-
This 19-year-old in Wisconsin was given a reduced jail sentence for holding this sign in front of ...
Sample budget spreadsheet form for first year of business.
The year 2010 was the hottest since 1880
The average weight gain between Thanksgiving and New Year's Day is about a pound