Question

"Mediocre economists often consider only the immediate direct effects of a change, whereas a good economist will also consider indirect effects that may only become observable over time." This statement most clearly emphasizes Select one a. the fallacy of composition. b. economizing behavior. C. the fact that association is not causation d. the importance of secondary effects. o

Answer 1

Answer:

the importance of secondary effects.

Explanation:

Secondary effects in economics is the effects the is experience from future rounds of repurchasing. This occurs after first purchase activity (primary effect).

An economic activity results in future events and this is called multiplier effect.

For example crime has primary effect of damage, loss of property, and loss of life. The secondary effects of crime is the measures put in place to curve future crime, people not wanting to come to an area where crime is common, discourages domestic and foreign direct investment.