Which of the Following Best Illustrates the Fallacy of Composition

question 193

Multiple Choice

Which of the following best illustrates the fallacy of composition?

• A) If Mr. Smith had more money, he could buy more scarce goods; if the Adams family had more money, it could buy additional goods.
• B) If Ms. Spann had more money, she could buy more scarce goods; if the nation had more money, everyone could buy more scarce goods.
• C) If other variables are not held constant, economists may not observe the relationship between price and quantity demanded that is expected.
• D) Aggregate consumption may not behave in the same manner as the consumption of a particular individual.