Many people have heard that the stock market rises when a team from the National Football Conference (NFC) wins the Super Bowl, and falls when a team from the American Football Conference (AFC) is victorious. If you conclude that there is a causal relationship between the outcome of the Super Bowl and stock prices, you probably are:
a. confusing correlation with causation
b. committing the fallacy of composition.
c. confusing the direction of causality, since everyone knows that stock prices determine which team wins the Super Bowl.
d. none of the above
a
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Which of the following would be likely to change the relative efficiency of trucks versus trains in carrying freight?
A) Higher wages for truck drivers B) More powerful locomotives C) Tolls on interstate highways D) All of the above.
Customers often complain about the high price of accessories for their cell phone including batteries, chargers and head sets. Often these items can cost even more than the price of the phone
Explain using price elasticity why this might be the case.
The level of capital per person would increase if
A) the average saving rate were higher. B) the output-to-capital ratio increased. C) the depreciation rate increased. D) Both A and B.
Assume Claudia's budget constraint is demonstrated by line A in the graph shown. Which of the following would cause Claudia's budget constraint to shift to line C?
A. The price of books dropped.
B. The price of movie tickets dropped.
C. Claudia's preferences for these two goods decreased.
D. Claudia’s income decreased.