Identify the error in judgment in each of the following statements: I. "If you leave a concert during the encore, you will avoid traffic and get home more rapidly; therefore everyone should leave during the encore." II. "Whenever I wear my lucky baseball cap to an exam, I receive an "A." My baseball cap must induce the teacher to give me good grades."

Statement I is an example of the fallacy of composition.
Statement II is an example of confusing association with causation.

Economics

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Indifference curves intersect at the point of utility maximization

Indicate whether the statement is true or false

Economics

The above figure depicts the Edgeworth box for two individuals, Al and Bruce. Point a is NOT Pareto efficient because

A) Al's MRS exceeds Bruce's MRS. B) the point is not near the center of the box. C) Al's indifference curve is not far enough away from the origin. D) All of the above.

Economics