Reaching the Incorrect Conclusion That One Event Causes Another Because

question 95

Multiple Choice

Reaching the incorrect conclusion that one event causes another because the events tend to occur together is called:

• A) the scientific method.
• B) the economic way of thinking.
• C) making choices at the margin.
• D) the fallacy of false cause.

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Definitions:

Redeemed

The act of repurchasing or paying off a security such as a bond or preferred stock at its maturity or before.

Loss On Redemption

The financial loss experienced when a debt security is redeemed before its maturity date for more than its par value.

Carrying Value

The book value of an asset on a company’s balance sheet, calculated as the original cost minus accumulated depreciation.

Bonds

Long-term debt securities issued by corporations or government entities that pay periodic interest until maturity, at which point the face value is repaid.