"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:

Health Psychologists

Experts dedicated to examining the impact of biological, psychological, and social elements on health and disease.

Pain Therapy Programs

Specialized healthcare interventions designed to manage and alleviate pain through various techniques, including medication, physical therapy, and psychological support.

Physiological Factors

Biological components that can affect the functioning of the body and influence health, such as genetics, hormone levels, and nutritional status.

Regressive Tax

At the individual level, a tax whose average tax rate decreases as the taxpayer’s income increases. At the national level, a tax for which the average tax rate (= tax revenue/GDP) falls as GDP rises.