"If Tom Had Twice as Much Money, He Could Consume

question 204

Multiple Choice

"If Tom had twice as much money, he could consume twice as much. If everyone had twice as much money, they could consume twice as much." This quote illustrates

• A) the difference between positive and normative economics.
• B) the fallacy of composition.
• C) that association is not causation.
• D) the law of unintended consequences.

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Definitions:

F-ratio

A statistical value used in the analysis of variance (ANOVA) to compare the variability among group means to the variability within groups.

Explanatory Variables

Variables in a statistical model that are used to explain variation in the outcome or response variable.

Regression Model

A statistical method used to model the relationship between a dependent variable and one or more independent variables.

Equation

A mathematical statement that asserts the equality of two expressions.