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.
A
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You are a lobbyist hired by a less developed country to try to prevent a developed country from increasing trade barriers against labor-intensive manufactured imports such as textiles
Make your case, arguing from both developed and developing country perspectives, in terms of who gains and who loses.
If a non-renewable resource is scarce, has constant marginal cost of production, and is sold in a competitive market,
A) its price will increase over time. B) its price will exceed marginal cost. C) its price will increase by the rate of interest. D) All of the above.
If disposable income is $400 billion, autonomous consumption is $60 billion, and MPC is 0.8, what is the level of saving?
a. $20 billion. b. $210 billion. c. $380 billion. d. $590 billion. e. $780 billion.
Once the profit-maximizing output where MR = MC is determined, price is set by
a. adding a standard markup percentage to marginal cost. b. the demand curve. c. making it equal to MR = MC. d. subtracting the marginal cost from total revenue.