Please help me with this 4 macro-economic multiple-choicequestions 1. Ten-year-o
ID: 1247281 • Letter: P
Question
Please help me with this 4 macro-economic multiple-choicequestions1. Ten-year-old Josh observes that people who play football arelarger than normal and tells his mom that he's going to playfootball because it will make him big and strong. Josh is:
a. committing the fallacy of composition.
b. violating the ceteris paribus assumption.
c. mistaking correlation for causation.
d. committing the fallacy of decomposition.
(Hint: The term "ceteris paribus" means that all variablesexcept those specified are constant).
2. Patricia works at a Law firm. She is considered what type ofresource?
a. an entrepreneur
b. Labor
c. capital
d. Management
3. A market system:
a. produces answers to a society's "what" and "who" questions, butnot the "for whom"
question.
b. produces answers to a society's "what" and "for whom" questions,but not the "how"
question.
c. produces answers to a society's "how" and "for whom" questions,but not the "what"
question.
d. produces answers to a society's "what," "how," and "for whom"questions.
e. does none of the above.
4. If bad weather destroyed half of the current coffee crop,ceteris paribus, it would:
a. increase the demand for coffee.
b. decrease the demand for coffee.
c. increase the demand for tea.
d. decrease the demand for tea.
e. increase the supply of tea.
Explanation / Answer
Ok, I will give you the answers here and explain them so youunderstand it: 1. C. Josh thinks that since football players areusually big and strong, if he becomes a football player, he will bebig and strong. The correlation is that football players arebig and strong. However, it is not a causation that if youare a football player, you will automatically become big andstrong. 2. B. Patricia is classified as Labor because she worksfor the Law firm. She is not an entrepreneur because sheworks for the firm rather than running the firm. She is notcapital or management because those terms tend to associate withmachinery and resources. 3. D. The market economy provides for all threequestions. 4. A. If there is less coffee crops, there will be lesscoffee, so there will be less supply of coffee and thus more demandfor coffee.