FORMATIVE ASSESSMENT ACTIVITY $15$: FALLACY OF COMPOSITION

Argue the following statement using the fallacy of composition principle. US $242910$ SO$1$ AC$1,2$

$[$Total: $10]$

$$If I save $50\%$ of my salary, I would be better off one year in the future. Therefore, if everyone saves $50\%$ of their salaries, we will all be better off one year from now.$$

FORMATIVE ASSESSMENT ACTIVITY $16$: DEMAND

Answer the questions below US $242910$ SO$1$ AC$1,2$

$[$Total: $10]$

$1.$ Discuss the statement, $$consumers$$ incomes influence demand$.$

$(4)$

$2.$ Can we say that when income increases, consumers buy more of most goods; and when income decreases, consumers buy less of most goods? Why $($not$)?$

$(6)$