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Dr Jewell Is Interested in Measuring People's Attitudes Toward Proposed

question 60

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Dr. Jewell is interested in measuring people's attitudes toward proposed tax cuts. One of his items reads, "People who support cutting taxes are not well informed about how the government works." What is the problem with this question?


Definitions:

Opportunity Costs

The missed opportunity to benefit from different options when a single choice is made.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Diseconomies of Scale

The phenomenon where an increase in production leads to higher costs per unit due to inefficiencies that arise from scaling up operations.

Increasing Returns

An increase in a firm’s output by a larger percentage than the percentage increase in its inputs.

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