Sources of Confusion in Economic Analysis Include

question 193

Multiple Choice

Sources of confusion in economic analysis include:

• A) fallacy of composition.
• B) rational self-interest.
• C) fallacy of segmentation.
• D) mistake of ignoring primary effects.
• E) making positive economic statements.

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Definitions:

Norms

Informal understandings that govern the behaviors of members of a society, guiding what actions are considered acceptable or not.

Cognitive Dissonance

The mental unease felt when possessing two or more contradictory beliefs, values, or attitudes.

Planned Behavior

A theory that predicts an individual's intention to engage in a behavior at a specific time and place.

Scientific Process

A systematic methodology involving observation, experimentation, and analysis to acquire knowledge and understand phenomena.