Explain and give an illustration
Explain and give an illustration of (a) the fallacy of composition; and (b) the “after this, therefore because of this” fallacy. Why are cause-and-effect relationships difficult to isolate in the social sciences?
Expert
(a) The fallacy of composition is the mistake of believing that something true for an individual part is necessarily true for the whole. Example: A single auto producer can increase its profits by lowering its price and taking business away from its competitors. But matched price cuts by all auto manufacturers will not necessarily yield higher industry profits.
(b) The “after this, therefore because of this” fallacy is incorrectly reasoning that when one event precedes another, the first even necessarily caused the second. Example: Interest rates rise, followed by an increase in the rate of inflation, leading to the erroneous conclusion that the rise in interest rates caused the inflation. Actually higher interest rates slow inflation.
Cause-and-effect relationships are difficult to isolate because “other things” are continually changing.
What do you mean by Financial Linkages in U.S. and World Trade?
Briefly describe the term explicit cost and implicit cost?
Both individual sellers and buyers within perfect competition: w) can affect the market price through their own individual actions. x) can affect the market price by joining along with some of their competitors. y) have to take the market price as a specified. z
Briefly explain the term leverages?
Comparison between EVA and Ratio Analysis: EVA helps in measuring the economic performance of the company. It is the profit earned by the firm less the cost of financing the firm’s capital. It shows that the shareholders gain when the return fro
Briefly state the pros and cons of Partnership?
Explain the slope of a straight line is the ratio of the vertical change to horizontal change between any two points on the line?
Explain how government might manipulate its expenditures and tax revenues to reduce unemployment?
Briefly explain the term Price Earnings Ratio (or P/E Ratio)?
Question: Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
18,76,764
1923410 Asked
3,689
Active Tutors
1454046
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!