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"As Soon as I Announced My 'Get Tough on Crime

Question 194

Multiple Choice

"As soon as I announced my 'get tough on crime' policy, criminals got scared and the crime rate went down." Suppose that the lower crime rate was actually caused by freezing cold temperatures in January--it was just too cold for anybody to be out robbing other people. Which fundamental economic mistake did the politician make?


A) believing that what's good for one person is good for the whole group (the fallacy of composition)
B) failing to take into account the benefits of crime (the payoff fallacy)
C) believing that association is the same as causation
D) failing to understand the theory of comparative advantage

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