ECO 111Exam 1 Fall, 2003
Directions: Answer 4 out of the 5questions in the space provided. Your answers will be evaluated on how well you organize your discussion, and the content of that discussion.
1. Identify the premises, and the conclusion of the following argument and state whether or not it is valid argument.
“Professional athletes are overpaid. Their work is a nothing more than playing a game. Many people would be willing to do the same work for free.”
2. Is the following an inductive or deductive reasoning? Explain why.
All Volvo owners have high incomes. Joe has a Volvo. Therefore Joe must have a high income.
3. Is inductive or deductive logic more commonly used in economics? Explain why.
4. Would you accept, reject or suspend judgement on the premises of the following argument.
Explain the rationale for your answer completely.
Don Evans, the United States Secretary of Commerce issued a report last year that showed the elimination of a 10% import duty (tax on imports) on European steel in 2001 was followed by a 5% decrease in the quantity of American steel purchased in 2002. The report was based on a sales figures provided by the Steel industry. These figures were confirmed as being accurate by an the World Trade Organization. The statistics provided in this report make a clear case for the reimposition of import duties on steel to protect the American steel industry.
5. Identify the fallacy in each of the following (if one exists) and explain why it is a fallacy.
a. Shortly after President Bush pushed his tax cuts through Congress in 2001, the size of the federal budget deficit increased significantly. This is clear evidence that the President’s economic policies are faulty.
b. Granting preferential trade status to China, a country that denies basic human rights, will lead human rights violations all over the world.