Agovernment passes a law increasing taxes on banks. two days later, there are several bank robberies. a politician who opposed the taxes claims that the new law is causing bank robberies. what is wrong with the politicians argument

In this example, the politician is making a claim that is not backed by evidence. Although he believes that the fact that both situations occurred at the same time is evidence of one being the reason for the other one to happen, this is a fallacy, or a mistake in logical thinking. The politician is confusing correlation with causation. The fact that two events happen together does nor necessarily indicate that one is the consequence of the other one.

the correct answer is “opportunity cost”. opportunity cost is what a company misses out because it decided in one option over another one. in this case, the company decided to invest in building a factory so it gave up another possible benefit or profit in order to achieve success with the factory.  

trade-off is not the correct answer since it is a situation in which you accept losing something in return for benefits in other areas.

and finally, consequence is a general term used to accept what it comes when you make a decision. it can be a positive or negative consequence depending if the decision you took was the correct one.  

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