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
QUESTION 2Economics is as much art as it is science.
a. True
b. False
QUESTION 3Economists tell stories
a. in order to breathe life into economic theory and personalize abstract ideas
b. because economics is an art, not a science
c. as a way of rigorously testing economic theory
d. because doing so is a required part of the scientific method
e. to show how their theory can predict at least one real-world situation
QUESTION 4The difference between positive economic statements and normative economic statements is that
a. both c and e are true
b. positive statements are based on opinion while normative statements are based on fact
c. positive statements are true and normative statements are often false
d. positive statements are often false and normative statements are true
e. positive statements are based on fact while normative statements are based on opinion
QUESTION 5The difference between a positive economic statement and a normative statement is that
a. a positive statement must be true; a normative statement is often not true
b. a normative statement must be true; a positive statement is often not true
c. a positive statement can be verified; a normative statement cannot
d. a normative statements can be verified; a positive statement cannot
e. a positive economic statement is a moral judgment; a normative economic statement is not a moral judgment
QUESTION 6There should be less discrimination against the elderly. This is an example of a
a. normative statement
b. positive statement
c. forecast
d. hypothesis
e. prediction
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