Hnrs: SDE - Exam #1

positive analysis

an objective statement that is testable

normative analysis

a subjective statement that is not testable

economics

the study of how people make choices given the existence of scarsity

opportunity cost

the highest valued forgone alternative; the value of the second most perfered option

economic guidepost #1

opportunity cost

economic guidepost #2

significance of incentives - monetary & non-monetary

economic guidepost #3

direct & indirect effects

economic guidepost #4

self interest of individuals; maximize utility/happiness

economic guidepost #5

rationality of individuals; make choices if benefit outweighs the cost

economic guidepost #6

value is subjective

economic guidepost #7

empirical evidence is highly significant

economic guidepost #8

consider all relevant costs & benefits

cost-benefit equation

marginal benefit (MB) > marginal cost (MC)

fallacy definition

a defect or flaw in your argument; an invalid conclusion drawn from an observation

fallacies of definitions (3)

1) weak analogy / false equivalence

2) subjective wording / vaugeness

3) open-ended fallacies

define weak analogy fallacy

an analogy that is unclear, unhelpful, or equates two things that are not equal

define the subjective wording fallacy

using words with vauge definitions and not defining what they mean in context

define open ended fallacy

arguing for more or less of something without defining how much more or less

fallacies about making stuff up (3)

1) false premise / begging the question

2) speculation / fallacy of unknowable fact

3) nonsequitor / does not follow

define the false premise fallacy

making a conclusion by relying on a statement or premise

define the speculation fallacy

making an argument about what would have happened under different or unknowable circumstances; there is no way to verify the claim

define the nonsequitor fallacy

the conclusion has nothing to do with the statement that comes before it; “A” is true, “B” is true, therefore “X”

illogical restriction fallacies (1)

1) either-or fallacy / false dilemma

define the false dilemma or either-or fallacy

assuming there are a limited number of possible outcomes when clearly there are more

causal fallacies (3)

1) false cause fallacy

2) single cause fallacy

3) slippery slope fallacy

define false cause fallacy

assuming that because A and B are correlated, A must have caused B

define single cause fallacy

assuming one single cause for an event

define slippery slope fallacy

assuming if something does or doesn’t happen, it will trigger a domino effect

graphs of false cause (2)

1) positive correlation

2) negative correlation

undermining proof fallacies (2)

1) argument from ignorance

2) lack of proof

fallacies of misrepresentation (2)

1) strawman argument

2) reductive fallacy

define the strawman argument

putting words in your opponents mouth, ignoring opponents actual stance and distorts it.

define the reductive fallacy

reducing something, often uses “nothing but”

“no room for argument” fallacies (3)

1) perfectionist fallacy

2) willed ignorance

3) ad hominem / appeal to hypocrisy / you did it too

perfectionist fallacy

arguing if something won’t be perfect it is not worth doing at all

willed ignorance definition

refusing to engage in critical thinking or logical thought, instead maintaining your beliefs are final and absolute

define the ad hominem / appeal to hypocrisy / you did it too fallacy

attacking your opponents character, personal, heritage, or choices instead of their actual argument

appeals (4)

1) appeal to popularity - bandwagon

2) appeal to authority

3) appeal to wealth

4) appeal to emotion

define appeal to popularity / bandwagon

using the popularity of something as evidence that it must be correct or true

define appeal to authority

using an authority figures opinion (especially if improper or irrelevant) as proof

define appeal to wealth

using someone’s wealth, money, or possessions as evidence they know about issues

define emotional appeal

attempting to persuade by targeting feelings (fear, pity, anger, etc.) rather than introducing valid evidence

define the genetic fallacy

discrediting the source or origin of an argument rather than the argument itself

questionable evidence & distraction fallacies (4)

1) anectdotal evidence

2) biased sample

3) cherry picking evidence

4) red herring

define anecdotyl evidence

offering isolated examples or personal experiences as evidence

define biased sample

conclusions drawn from a biased sample of results

define cherry picking

only using evidence that confirms your bias and argument, and ignoring evidence that counters it

define red herring

an attempt to redirect your opponents attention away from the main topic

define hasty generalization

extrapolating future outcomes based on too few data points, broad contributions from inadequate samples

steryotyping falls under what fallacy

hasty generalization

economic fallacies (3)

1) the zero-sum fallacy

2) the broken window fallacy

3) the chess piece fallacy

define the zero-sum fallacy

the mistaken assumption that voluntary trade is a zero-sum game and only one party can gain at the expense of the other

define the broken window fallacy

focusing on what is easy to see and ignoring what is not easy to see

define the chess piece fallacy

the assumption that you can easily arrange choices for others or society like pieces on a chess board