The fallacy of composition is the erroneous view that:
a. an increase in the supply of money will cause a general increase in the level of prices
b. a small change in an economic variable will have an unrecognizable but significant effect on the economy.
c. when two events are associated, the one observed first must have caused the second.
d. if something is true for an individual, then it must also be true for a group.
d
You might also like to view...
A monopolist has demand and cost curves given by:
QD = 1000 - 2P TC = 5,000 + 50Q a. Find the monopolist's profit-maximizing quantity and price. b. Find the monopolist's profit.
While waiting in line to buy one cheeseburger for $1.50 and a medium drink for $1.00, Sally notices that she could get a value meal that contains both the cheeseburger and medium drink and also a medium order of fries for $2.75 . She thinks to herself, "Is it worth the extra 25 cents to get the medium fries?" To an economist, Sally's decision is an example of:
a. marginal analysis. b. basing decisions on total, rather than marginal, value. c. an unintended consequence. d. the fallacy of composition.
Which of the following statements best describes the Phillips curve from a Keynesian viewpoint?
a. From a Keynesian viewpoint, the Phillips curve should slope down so that higher unemployment means lower inflation. b. From a Keynesian viewpoint, the Phillips curve should slope down so that lower unemployment means lower inflation. c. From a Keynesian viewpoint, the Phillips curve should slope down so that higher unemployment means higher inflation. d. From a Keynesian viewpoint, the Phillips curve should slope down so that lower unemployment means higher inflation.
_____ includes products that can be transported over telephone and computer networks at ever-lower costs
a. Digital information b. Analog information c. Strategic information d. Primary information