The fallacy of composition is essentially the error of:
a. confusing association with causation
b. confusing normative economics with positive economics.
c. generalizing from the individual to the whole.
d. omitting relevant variables from an economic model.
c
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If one firm in a duopoly increases its production by one unit beyond the monopoly output, that firm's profit ________, the other firm's profit ________, and the total profit of the duopoly ________
A) increases; increases; increases B) does not change; does not change; does not change C) increases; decreases; does not change D) increases; does not change; increases E) increases; decreases; decreases
Which group came out of World War I (1914–18) better off?
(a) Industrial and agricultural workers (b) Creditors (c) Individuals depending on investment (d) People living on fixed incomes
Which of the following is intended to improve the rate of return for inventors of new technology?
a. Tax breaks for firms that engage in R&D b. Low rates for capital investment projects c. Shorter periods for patent protection d. Less government oversight in R&D projects
Consider the following equation for household consumption expenditure:
Consmptn= 
0+ 1Inc + 2Consmptn-1+ u
where ‘Consmptn' measures the monthly consumption expenditure of a household, ‘Inc' measures household income and ‘Consmptn-1' is the consumption expenditure in the previous month. Consmptn-1 is a _____ variable.
A. exogenous
B. binary variable
C. lagged dependent
D. proxy variable