Increasing the share of your income that you save is good for you. Therefore it would be good for the whole economy if everyone saved more. This exemplifies the:
A. Post hoc fallacy
B. Fallacy of composition
C. Use of loaded terminology
D. Confusion between correlation and causation
Answer: B
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With respect to CO2 emissions, low-income countries
a. do not contribute to the problem b. can expect to have "dirtier" industries as they develop c. contribute more per dollar of output than high-income countries d. will have to sacrifice output in order to reduce emissions e. none of the above
When costs spill over to third parties, there is a(n)
A) cost overrun. B) excessive competition. C) negative externality. D) government subsidy.
Being on the PPF implies that increasing the production of one good or service can only be accomplished by decreasing the quantity produced of another good or service
a. True b. False Indicate whether the statement is true or false
Here is a consumption function: C = C0 + MPC(Yd). If C0 = $300, then we know that
A) if Yd rises by $1, then Co rises by $1. B) if Yd rises by $1, then C rises by $300. C) as C0 rises by $15, C rises by $15. D) as C0 rises by $15, Yd rises by $15.