Which pitfall to sound economic reasoning is reflected in a person's view that "pharmaceutical and oil companies are price-gouging the consumers"?
A) faulty definition
B) post hoc fallacy
C) loaded terminology
D) confusing correlation and causation

Question

Quizplus · Accepted Answer

The statement "pharmaceutical and oil companies are price-gouging the consumers" uses loaded terminology, which refers to words or phrases that are emotionally charged and can influence the listener's judgment. The use of the term "price-gouging" assumes that the companies are exploiting customers, without providing evidence or considering other factors that may affect prices. It is also important to note that prices are not solely determined by the seller but also by market forces such as supply and demand, production costs, and competition.

Which Pitfall to Sound Economic Reasoning Is Reflected in a Person's