Your friend notices that U.S. auto production and U.S. population growth have moved together over several decades

ECONOMICS

Multiple Choice

Your friend notices that U.S. auto production and U.S. population growth have moved together over several decades. He reasons that one way to slow population growth is for the government to order the auto makers to cut back on production. You gently point out to him that he

a. is correct only when the economy is in a recession

b. has mistakenly inferred causation from observed correlation

c. has ignored secondary effects

d. has committed the fallacy of composition

e. is correct only when the United States enjoys economic growth

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