Which of the following is an accurate statement about the fallacy of composition?
a. Group plans are often thwarted by individual behavior.
b. Individual behavior is easier to predict than group behavior.
c. The motivation for individuals changes when they become part of a group.
d. Individual truth and group truth are often different.
d. Individual truth and group truth are often different.
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Refer to Figure 4-5. The figure above represents the market for pecans. Assume that this is a competitive market. If the price of pecans is $9
A) too many consumers want to buy pecans. B) economic surplus is maximized. C) the quantity demanded is economically efficient but the quantity supplied is economically inefficient. D) the quantity supplied is greater than the economically efficient quantity.
Using a Paasche index to calculate the Consumer Price Index (CPI)
A) weights quantities with current prices. B) weights prices with base-year quantities. C) weights quantities with base-year prices. D) weights prices with current year quantities.
Refer to Figure 6.6, which shows a market for taxi medallions. If the number of taxi licenses is reduced from Q2 to Q1:
A. the gain in consumer surplus equals the loss in producer surplus. B. the gain in producer surplus equals the loss in consumer surplus. C. the gain in consumer surplus is greater than the loss in producer surplus. D. the gain in producer surplus is smaller than the loss in consumer surplus.
Suppose a firm produces pollution when it generates electricity. The cost of the pollution is called the
A) marginal cost. B) marginal private cost. C) marginal external cost. D) marginal social cost.