Multiple Choice
Which of the following best illustrates the fallacy of composition?
A) If the price of a product rises, the quantity produced will decline.
B) The average wage rate tends to increase at approximately the same rate as inflation; hence, wage increases must cause inflation.
C) Resources are scarce; therefore, there is no such thing as a free lunch.
D) If Susan had more money she could buy more. If everyone had more money they could buy more.
Correct Answer:
Verified
Correct Answer:
Verified
Q8: Which of the following is a positive
Q21: If a good is scarce,<br>A) there will
Q58: Which of the following is most consistent
Q83: "Mediocre economists often consider only the immediate
Q126: Deciding how to make the best use
Q155: People make decisions at the margin. Thus,
Q157: Scarcity implies that<br>A) consumers are too poor
Q158: Harry, a wheat farmer, is deciding whether
Q159: Doris, a burglar who breaks into houses,
Q179: When price is the rationing criterion, individuals