Tatiana observes that all of her friends who have more than five tattoos also have more than five body piercings, and concludes that getting multiple tattoos makes people also get multiple piercings. Tatiana is
A. confusing correlation and causation.
B. describing regression discontinuity.
C. correct in her analysis.
D. describing difference-in-differences.
Answer: A
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Intermediate goods are goods and services used:
a. by the ultimate user. b. by state and local governments. c. as inputs. d. both as inputs and final goods.
Within the framework of the AD/AS model, if a long-run equilibrium is present in the goods and services market,
a. decision makers will have accurately forecast the current price level when they arrived at resource price and loanable funds agreements. b. the profit rates of the firms will generally exceed the competitive level. c. the actual rate of unemployment will fall below the natural rate of unemployment. d. the current rate of output will be sustainable in the future. e. both a and d are correct.
Firms that offer contracts through which individuals pay premiums to insure against some loss are known as:
A. thrifts B. mutual fund companies C. insurance companies D. investment banks
A budget surplus occurs when tax revenues are greater than government expenditures.
Answer the following statement true (T) or false (F)