The incorrect presumption that because two events tend to occur together, one must cause the other is the:
A) confusion of economists.
B) blunder of science.
C) fallacy of false cause.
D) error of inclusion.
Ans: C) fallacy of false cause.
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Direct controls are generally much more costly than emissions taxes because
a. under direct controls emissions cutbacks are usually not apportioned among the firms on the basis of their ability to reduce pollution cheaply and efficiently. b. emissions tax per unit of output is higher than the per-unit direct control program cost. c. government cannot legally levy emissions taxes that are as high. d. firms disregard emissions taxes.
A middleman is a person who
a. specializes in arranging trades and selling, guaranteeing, and servicing items traded. b. acts as a middle person between the top management of a business firm and the hourly employees who actually produce the goods and services. c. adds to the seller's expense and the buyer's buying price without providing a service to either. d. levies a tax on private sector activity and uses the funds to support government activities.
Which of the following is similar for oligopoly and monopolistic competition?
A. Both have low concentration ratios. B. Both make independent production decisions. C. Both have market power. D. Both have many firms.
The interest rate is the price borrowers pay to borrow money.Key interest rates are controlled by the Federal Reserve System.If the Federal Reserve acts to reduce interest rates, economists would expect the quantity of money demanded to
A. increase. B. decrease. C. not change. D. not change, although the demand schedule itself will shift outward.