(Last Word) The post hoc fallacy and the correlation problem both relate to:
A. the calculation of marginal costs and marginal benefits of any economic activity.
B. the issue of determining causation.
C. the frequent inability of households and businesses to behave rationally.
D. the trade-off problem associated with competing goals.
Answer: B
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Since a monopolist firm will lose some customers when the price is increased, it will make every effort to keep the price as low as possible.
Answer the following statement true (T) or false (F)
The Federal Reserve raises the discount rate. This would be an example of:
a) easy fiscal policy b) tight monetary policy c) offensive monetary policy d) tight fiscal policy e) easy monetary policy
An increase in the demand for the Brazilian real induces
A. a decrease in the supply of dollars. B. an increase in the demand for Brazilian goods. C. an increase in the dollar price of a real. D. an increase in the real price of a dollar.
Countries in sub-Saharan Africa are economically disadvantaged because infectious diseases spread in these countries relatively easily. This statement reflects the:
A) geography hypothesis. B) culture hypothesis. C) location hypothesis. D) institutions hypothesis.