Unintended consequences of economic actions that may develop slowly over time as people react to events is known as:
A) the association-is-causation fallacy.
B) the fallacy of composition.
C) a primary effect.
D) a secondary effect.
E) a behavioral assumption.

Question

Quizplus · Accepted Answer

This question is referring to the concept of secondary effects or unintended consequences, which refers to the indirect consequences that may develop over time as people react to economic events. Choice D, "a secondary effect", best captures this definition. The other answer choices are not correct descriptions of this concept - the association-is-causation fallacy (A) is a logical fallacy related to mistaken assumptions about correlation and causation, the fallacy of composition (B) is the mistaken assumption that what is true for one part of a system must be true for the whole system, a primary effect (C) is not a term commonly used in economics, and a behavioral assumption (E) refers to assumptions about how people behave in economic models.

Unintended Consequences of Economic Actions That May Develop Slowly Over