Your Friend Notices That U

question 61

Multiple Choice

Your friend notices that U.S. auto production and U.S. population growth have moved together over several decades. He reasons that one way to slow population growth is for the government to order the auto makers to cut back on production. You gently point out to him that he

• A) is correct only when the economy is in a recession
• B) has mistakenly inferred causation from observed correlation
• C) has ignored secondary effects
• D) has committed the fallacy of composition
• E) is correct only when the United States enjoys economic growth

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Definitions:

Labor Force

The sum of individuals either holding a job or looking for work within a specific economic sector.

Agriculture

The practice of cultivating land and breeding animals to provide food, fiber, medicinal plants, and other products.

Technological Progress

The overall process of invention, innovation, and diffusion of technology or processes.

Farm Incomes

The earnings from agricultural activities, considering the revenue from crop and livestock sales minus production costs.