Which of the following statements is an example of confusing association and causation?
A. Senator Jones believes that more tax revenue should be distributed to the poor.
B. A map includes roads, but not every restaurant, telephone pole, and
C. Interest rates rise when it rains, all other factors constant.
D. When the price of Coca-Cola increases, consumers buy more Pepsi, all other factors constant.
Answer: C
You might also like to view...
Network externalities refer to the situation where the usefulness of a product increases with the number of consumers who use it
Indicate whether the statement is true or false
When PAE decreases then the economy will move towards:
A. constant levels of GDP. B. higher levels of equilibrium aggregate expenditure. C. lower levels of equilibrium GDP. D. higher levels of equilibrium GDP.
Figure 16.3Figure 16.3 depicts a market for electricity. S1 is the supply curve without the external costs. S2 is the supply curve with the $T tax. Assume electricity production incurs external costs. If the government imposes a pollution tax, the price of a mega-watt of electricity will increase by:
A. PA - PB. B. PA - PC. C. PB - PC. D. 1/2 (PA - PC).
Most doctors are employed by the government and most hospitals are owned by the government in
A) Canada. B) Japan. C) the United Kingdom. D) the United States.