For each of the following statements, indicate whether it is TRUE or FALSE overall, and give a
reason for your answer.
1.1 The fundamental economic problem involves the efficient allocation of scarce resources.
[3 marks]
1.2 The following scenario is an example of the post-hoc fallacy: The data from a 2019
survey study indicate a positive correlation between cognitive ability and financial literacy
levels, implying that cognitively stronger individuals will be more financially literate than
cognitively weaker individuals. [3 marks]
1.3 A house can be described as a heterogenous good because most houses look identical to
one another. [3 marks]
1.4 Capital goods are an important type of private property. (Use an example to motivate
your answer) [3 marks]
For each of the following statements, indicate whether it is TRUE or FALSE overall, and give a
reason for your answer.
1.1 The fundamental economic problem involves the efficient allocation of scarce resources.
[3 marks]
1.2 The following scenario is an example of the post-hoc fallacy: The data from a 2019
survey study indicate a positive correlation between cognitive ability and financial literacy
levels, implying that cognitively stronger individuals will be more financially literate than
cognitively weaker individuals. [3 marks]
1.3 A house can be described as a heterogenous good because most houses look identical to
one another. [3 marks]
1.4 Capital goods are an important type of private property. (Use an example to motivate
your answer) [3 marks]
