The fallacy of composition is the incorrect view that what is true for ______.
a. the group is always true for the individual.
b. the individual is always true for the group
c. three people will remain true when another person joins the group.
d. a small group will remain true for a larger group
b. the individual is always true for the group
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The ability of a financial asset to be used to immediately make transactions is called:
A) store of value. B) medium of exchange. C) illiquidity. D) liquidity.
The World Bank estimates that about ____ of the planet lives below $1.90 a day per person, and ____ lives on less than $3.10:
A. 1%; 35%. B. 13%; 50%. C. 35%; 50%. D. 13%; 35%.
Two donut chains in your town are battling for customers. The manager of the Real Yum Donut Shop lowered donut prices. As a result, customers: a. increase the quantity demanded of Real Yum donuts
b. decrease the quantity demanded of Real Yum donuts. c. buy the same quantity of Real Yum donuts as before the price change. d. decrease their demand for Real Yum donuts.
It is claimed that mutual funds have two advantages. The first is that mutual funds allow people with small amounts of money to diversify. The second is that mutual funds provide the skills of professional money managers who buy stocks they believe will be the most profitable and thereby increase the return that mutual fund depositors earn on their savings
a. Economists strongly agree with both claims. b. Economists are skeptical of both claims. c. Economists are skeptical of the first claim, but strongly agree with the second. d. Economists strongly agree with the first claim, but are skeptical of the second.