Which of the following best illustrates the fallacy of composition?
a. If I have more money, I will be better off; therefore if we all had more money, we all would be better off
b. If I buy more gas each week, my gas consumption increases; therefore, if all gas consumers buy more gas each week, total gas consumption will increase.
c. If I spend more time studying, I will learn more; therefore, if all students spend more time studying, they will learn more.
d. If women's hemlines are higher this year, the Dow Jones Industrials average will fall.
a
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The used car market has a significant amount of adverse selection because
A) the seller knows more about the car than the buyer. B) the buyer can easily find out more about the car than the seller. C) buyers and sellers rarely have enough information. D) the transaction costs of the used car market are prohibitive.
If total fixed cost increases, then the average total cost curve ________ and the marginal cost curve ________
A) does not shift; shifts upward B) shifts upward; shifts upward C) does not shift; does not shift D) shifts upward; does not shift
The steeper an isoquant is,
A) the greater is the marginal productivity of labor relative to that of capital. B) the greater is the substitutability between capital and labor. C) the greater is the need to keep capital and labor in fixed proportions. D) the greater is the level of output.
Which of the following is legal under the Taft-Hartley Act?
A) closed shops B) collective bargaining C) secondary boycotts D) sympathy strikes