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.
Answer: A
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People generally purchase less of a commodity as its price increases. This implies that the relationship between quantity purchased and the price of the commodity must have a
A. slope always equal to one. B. positive slope. C. zero slope. D. negative slope.
If the coupon payment on a bond is $350 and the coupon rate is 7%, then what is the face value of the bond?
A. $5,000 B. $374.50 C. $24.50 D. $528.57 E. There is not enough information provided to answer this question.
A positive (non-zero) price for a good means there is a surplus of that good
a. True b. False Indicate whether the statement is true or false
As the volume of waste decreases (holding the amount of paper produced constant), the production cost per ton of paper increases at a decreasing rate because the firm must use increasingly sophisticated abatement equipment to decrease the volume of waste.
Answer the following statement true (T) or false (F)