Reaching the incorrect conclusion that one event causes another because the events tend to occur together is called:
A) the scientific method.
B) the economic way of thinking.
C) making choices at the margin.
D) the fallacy of false cause.
Ans: D) the fallacy of false cause.
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Most people who earn the minimum wage are poor
Indicate whether the statement is true or false
If a single household received all income, the Gini coefficient would
a. have a value of zero. b. be identical to the Lorenz distribution. c. have a value of 1. d. have a value of infinity.
In 1984, the South Carolina State Supreme Court ruled that a 20 percent admission tax on X-rated movies was unconstitutional. When the affected cinemas sought a refund of collected taxes, they were denied on the grounds that the tax, although collected by the theater, was indeed paid by the theatergoers. The Supreme Court apparently believed
A. the supply of X-rated movies was perfectly elastic. B. the demand for X-rated movies was perfectly inelastic. C. the legislation intended that the theatergoers pay the tax. D. the burden fell on the theatergoers—there are no excess burdens on the theater.
Which of the following would not be included in the expenditure category called investment expenditures?
A) spending on new houses B) a purchase of shares of preferred stock C) a purchase of a copy machine by FedEx Office D) the cars held in inventory on a local Ford dealer's lot