Which of the following is the best example of what economists call the "Fallacy of Composition"?
Group of answer choices
A bank lowers its mortgage interest rates in order to encourage more people to borrow money to buy a house. Because of rising housing prices it turns out that fewer people take out a mortgage. The bank loses money due to fewer customers and lower rates.
A politician predicts that the unemployment rate will fall considerably in the future. He therefore suggests to eliminate all government stimulus programs.
Union leaders are demanding more job security for their workers. They claim that more job security leads to happier workers and more productive workers.
Fast food workers demand higher wages. The higher wages will increase overall wages in the entire economy and stimulate the economy.
A movie theater owner lowers the price of his movie tickets. His argument is that lower prices will bring in more customers. These customers will buy more concessions and overall revenue will increase.
