Author Question: A decrease in the relative price of economics textbooks will raise the aggregate quantity of an ... (Read 45 times)

jCorn1234 · **on:** Jun 30, 2018

A decrease in the relative price of economics textbooks will raise the aggregate quantity of an economy's goods and services demanded.
a. True
b. False
Indicate whether the statement is true or false

Question 2

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.