Explain what the fallacy of composition is and give an example
What will be an ideal response?
The fallacy of composition is the incorrect belief that what is true for a part is necessarily true for the whole. For example, intensive fishing in an area by a boat may increase profits earned by the boat owner. However, if many boats excessively fish in the same area, the stock of fish will become depleted and all will be worse off.
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The owner of a network will always want to be compatible with other networks in order to take advantage of network economies
Indicate whether the statement is true or false
When computing gross domestic product, government services are valued at the
a. price consumers pay for them. b. value of the resources used to produce them. c. value of comparable outputs from the private sector. d. value of taxes collected from consumers.
Define horizontal equity and briefly describe some features of the U.S. federal income tax system that may interfere with achieving it
The argument that import restrictions save jobs and promote prosperity fails to recognize that
A) import restrictions cannot create jobs in any industry. B) import restrictions cannot create jobs in any industry. C) there are no secondary effects of import restrictions. D) import restrictions will lower prices in the protected industries.