"Mediocre Economists Often Consider Only the Immediate Apparent Effects of a Change

question 83

Multiple Choice

"Mediocre economists often consider only the immediate apparent effects of a change, whereas a good economist will also consider effects that may only become observable over time." This statement most clearly emphasizes

• A) the fallacy of composition.
• B) economizing behavior.
• C) the importance of secondary effects.
• D) the fact that association is not causation.

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Definitions:

Aggregation

The process of combining multiple units or factors into a single group or total.

Net Working Capital

A financial metric indicating how well a company can fulfill its immediate financial liabilities, achieved by subtracting current liabilities from its current assets.

Aggregation

The process of combining multiple sets of data or items into a single group or total.

Financial Planning

The process of strategically managing one’s financial affairs to meet life goals and secure financial future.