(Last Word) The fallacy of composition states that:
A. because economic systems are composed of so many diverse economic units, economic
laws are necessarily inexact.
B. the anticipation of a particular event can affect the composition of that event when it
occurs.
C. what is true for the individual must necessarily be true for the group.
D. because event A precedes event B, A is necessarily the cause of B.
Answer: A
You might also like to view...
The marginal product of labor (MPL) is given by the ________
A) labor share of income + average output per unit of labor B) labor share of income - average output per unit of labor C) labor share of income ÷ average output per unit of labor D) labor share of income × average output per unit of labor E) none of the above
The Road Runner Club contributes money to Senator Sly's reelection campaign fund, and Senator Sly helps pass legislation to add more jogging paths across the state. From this we can definitively conclude:
A. that political corruption has occurred. B. that logrolling has occurred. C. that a principal-agent problem has occurred. D. nothing; the Road Runner Club may have donated to Senator Sly because he already supported the jogging paths.