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econ 2301 Exam | 421 Questions with 100% Solutions/Verified Answers
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Economics - ANSWER Economics is the study of the choices, methods or systems used by societies to allocate scarce resources. Fallacy of Composition - ANSWER The fallacy of composition exists when we conclude that something that is appropriate for an individual must be also appropriate for society. Example: If it is good for the individual it must be good for the overall economy. Marginal Analysis - ANSWER Comparing the marginal (extra) costs to the marginal (extra) benefits as an aid to decision making. Example: Is the extra (marginal) benefit of a college degree greater than the marginal cost?
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