Refer to the information provided in Scenario 36.2 below to answer the question(s) that follow.SCENARIO 36.2: A survey of 1,000 people in Austin, Texas (population 900,000) found that those who have chosen to eat organic produce for at least the past 5 years have experienced fewer serious medical issues than those who have not elected to eat organic produce. Therefore, the conclusion was made that eating organic produce helps prevent people from experiencing serious medical problems.Refer to Scenario 36.1. Which of the following statements pertaining to the scenario is the most accurate with respect to selection bias?
A. The survey exhibits selection bias in that the 5-year time frame used to gauge serious medical issues is not long enough.
B. The conclusion exhibits selection bias in that there may be other factors, such as those who eat organic produce also exercise on a more regular basis, that could account for fewer serious medical problems.
C. The survey exhibits selection bias in that only 1,000 people were surveyed in a city with a population of 900,000).
D. All of the above are correct.
Answer: B
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a. income and saving fall. b. income and market value of all production both fall. c. income falls and market value of all production rises. d. income rises and market value of all production falls.
Suppose households attempt to increase their money holdings. To stabilize output by countering this increase in money demand, the Federal Reserve would
a. increase government spending. b. increase the money supply. c. decrease government spending. d. decrease the money supply.
One timing problem with fiscal policy to counter a recession is an "administrative lag" that occurs between the:
A. start of the recession and the time it takes to recognize that the recession has started. B. time the need for the fiscal action is recognized and the time that the action is taken. C. end of the recession and the time it takes to recognize that the recession has ended. D. time fiscal action is taken and the time that the action has its effect on the economy.
The monetarists placed the blame for the economic instability of recent decades on
A. the President and Congress. B. the Federal Reserve. C. the American people. D. foreign investors.