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.
Changes in boreal forest composition along a chronosequence in Quebec. Dates refer to the year of th
History of the number of observed sunspots during the last 250 years, which shows the ~11-year solar
The Kingsley plantation, on Fort George Island in Jacksonville, Florida. Zephaniah Kingsley, the own
Chinese workers on a railway in the far West. “Without them,” Leland Stanford, president of the Cent
W-2 form issued to employees at the end of the year.
New year kid drawing