Economics Learned: Fallacy of Composition

Perhaps a good first lesson is that: things are often not what they seem. The following true statements provide an example.

“If a farmer works hard and nature cooperates in producing a bumper crop total farm income may fall and probably will.”

“Higher prices for one industry may benefit its firms; but if the prices of everything bought and sold increased in the same proportion, no one would be better off.”

“It may pay a firm to take on some business at much less than full coats.”….

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With his passion for economics Bill Tatro has been entertaining audiences on the radio and in seminars for decades. Bill is an economist that provides weekly paid content to subscribers, and offers a free daily "lite" version as well.