Whenever the Democrats gain control of the Congress, spending on social programs increases; whenever Republicans gain control of the Congress, spending on defense increases. Hence, we know what the next party in control will do. This statement is an example of the
A. ceteris paribus fallacy.
B. post hoc, ergo propter hoc fallacy.
C. fallacy of stability.
D. fallacy of inductive reasoning.
Answer: B
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The goal of health insurance is to
a. redistribute income from the sick to the healthy. b. spread risk over a large group of people. c. equally distribute the probability of loss over a large number of people. d. collect sufficient premiums to cover all possible losses. e. equalize the availability of medical care across population groups.
The German inflation rate after World War I was measured in the thousands of percent. This condition is referred to as
A. fundamental inflation. B. environmental inflation. C. hyperinflation. D. episodic inflation.
Short-term interest rates show the cost of borrowing money for how long?
(A) Between 10 and 30 years. (B) For no more than a month. (C) For a few days or months. (D) Between a few months and two years.
New airplanes, which normally consume less fuel per passenger-mile, become less efficient for commercial airlines to purchase and use as
A) average flight distances lengthen.
B) fewer non-stop flights are scheduled.
C) fuel prices fall.
D) the demand for airline travel increases.
E) the price of new airplanes falls.