The fallacy of composition is the erroneous view that:
a. an increase in the supply of money will cause a general increase in the level of prices
b. a small change in an economic variable will have an unrecognizable but significant effect on the economy.
c. when two events are associated, the one observed first must have caused the second.
d. if something is true for an individual, then it must also be true for a group.
d
Economics
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For this reason, the multiplier effects of changes in taxes and transfer payments are smaller than the multiplier impacts of government spending.
What will be an ideal response?
Economics
What is one reason consumers might demand a discount for quantity purchases?
A) higher storage costs B) lower marginal cost C) lower marginal benefit D) price gouging
Economics