"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:

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, which suggests that people are motivated by five basic categories of needs: physiological, safety, love/belonging, esteem, and self-actualization.

Organization

A structured group of people working together to achieve common goals or objectives.

Need for Belonging

A fundamental human desire to be part of a group or community and feel connected to others.

Maslow's Hierarchy

A theory in psychology, proposed by Abraham Maslow, which outlines a five-tier model of human needs, from basic physiological needs to self-actualization.