Which of the following is most likely to represent causality rather than association?
A. In years that fashion dictates wider lapels on men's jackets, the stock market grows by at least 5 percent.
B. Interest rates are higher in years ending with a 1 or a 6.
C. Unemployment falls when the AFC champion wins the Super Bowl.
D. Quantity demanded goes up when price falls because lower prices increase consumer purchasing power, ceteris paribus.
Answer: D
You might also like to view...
Being a member of a cartel is similar to being in a Prisoner's Dilemma situation because
a. each firm is being held hostage by the decisions of the other firms. b. of anti-trust laws which make price fixing a criminal offense. c. to obtain the best possible outcome for all, an enforcement mechanism is needed. d. of the presence of organized crime in industries with cartels.
A boss can type 200 words per minute and sell 2000 units of the company's product in one day. His assistant can type 150 words per minute and sell 1000 units of the company's product in one day. Discuss who has absolute and comparative advantages in the "production" of typing and selling.
What will be an ideal response?
If the production possibilities frontier is ________, then opportunity costs are constant as more of one good is produced
A) bowed out B) linear C) bowed in D) non-linear
Under a fixed exchange rate system, an expansionary fiscal policy such as an increase in government expenditures will lead to a(n) ________ in real GDP and a ________ inflation rate
A) increase; higher B) increase; lower C) decrease; higher D) decrease; lower