Data analysis or interpretation mistakes (that econ can help one avoid)
What will be an ideal response?
- Not using or calculating correctly MB's and MC's in evaluating choices
- Not distinguishing correlation from causality
- Not distinguishing 'facts' from 'opinions'
- Not recognizing possible multiple goals
- Not understanding the 'fallacy of composition'
- Not seeing conclusions may vary with different data or observation points
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Investment, a key component of aggregate demand, can cause recessions and booms based on fluctuations in its levels
Indicate whether the statement is true or false
If gasoline prices rise by 20% and quantity demanded falls by 5%., then the price elasticity of demand is:
A) .05. B) .15. C) .20. D) .25. E) .40.
If a binding price floor is imposed on the video game market, then
a. the quantity of video games demanded will decrease. b. the quantity of video games supplied will increase. c. a surplus of video games will develop. d. All of the above are correct.
The fact that nominal GDP has risen faster than real GDP:
A. suggests that the base year of the GDP price index has been shifted. B. tells us nothing about what has happened to the price level. C. suggests that the general price level has fallen. D. suggests that the general price level has risen.