"When one basketball team spends a large sum of money acquiring better players, it is better off. If all teams do the same thing, all of them are better off." These statements demonstrate:
a. the fallacy of composition
b. confusing association with causation.
c. a misunderstanding of the direction of causality.
d. the ceteris paribus condition.
a
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The question "Is the U.S tax system disproportionate enough?" is a ________ question, and the question "How would higher taxes make the rich behave?" is a ________ question
A) normative; normative B) normative; positive C) positive; normative D) positive; positive
Explain why firms in a cartel might lobby for government regulation.
What will be an ideal response?
The balance of payments is:
A. the accounting of trade in financial assets. B. the accounting of trade in goods and capital. C. positive when a country has a trade deficit. D. negative when a country has a trade surplus.
Government expenditures on goods and services have an indirect impact on the aggregate demand, while taxes have a direct impact
a. True b. False Indicate whether the statement is true or false