Which of the Following Is True

question 178

Multiple Choice

Which of the following is true?

• A)​Virtually all theories in economics are expressed using a ceteris paribus ("let everything else be equal" or "holding everything else constant") assumption.
• B)​The fallacy of composition is that, even if something is true for an individual, it is not necessarily true for many individuals as a group.
• C)​One must always be careful not to confuse correlation with causation.
• D)​All of the above are true.

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Definitions:

Buyers

Persons or organizations that buy products or services for private consumption, for selling them again, or for manufacturing purposes.

Sellers

Individuals or businesses that offer goods or services for sale, contributing to the supply side of the market economy.

Excise Tax

A tax levied on the sale or consumption of specific goods or services, such as tobacco and alcohol.

Demand Shift

Occurs when there is a change in the quantity demanded at every price level, caused by factors other than the price of the good itself.