Alicia makes the statement that everytime she eats chocolate, it gives her acne. By ignoring the possibility that there may be another factor that causes Alicia to eat chocolate and which also causes her acne, Alicia is commiting the
a. fallacy of composition
b. fallacy that association is causation
c. fallacy of segmentation
d. mistake of ignoring secondary effects
e. mistake of looking beyond the obvious
B
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Banks in Richland charge an interest rate of 4% for overnight loans to each other. How will this rate change if the central bank of Richland engages in open market operations to purchase bonds?
What will be an ideal response?
The terms "correlation" and "causation" are synonymous
a. True b. False Indicate whether the statement is true or false
According to a recent survey, in 2012, the number of U.S. households that owned equitites was about:
a. 3 % b. 27 % c. 45 % d. 55 %
Specialization is a major obstacle to international trade
a. True b. False Indicate whether the statement is true or false