In the 19th Century, Russian Peasants Noticed That During Cholera

question 21

Multiple Choice

In the 19th century, Russian peasants noticed that during cholera epidemics there were lots of doctors around; in an attempt to eliminate cholera, they killed all the doctors.This is an example of

• A)mistaking correlation with causation.
• B)the fallacy of opportunism.
• C)excessive abstraction.
• D)rationality.
• E)marginal analysis.

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Definitions:

Marginal Revenue

Earnings obtained from the sale of one more unit of a good or service.

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded, reaching a state of balance.

Perfectly Competitive

A market structure characterized by a large number of small firms, a homogeneous product, free entry and exit, and perfect information, leading to price-takers behavior.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, resulting in market equilibrium.