Economists claim that individuals buy less as the price of a good increases. However, even though housing prices have been rising, home sales have also been increasing, so economic theory must be wrong. Which of the following best characterizes the statement? a. The statement ignores the secondary effects of government policies.
b. The statement contains the fallacy of composition.
c. The statement violates the ceteris paribus condition.
d. The statement demonstrates that association proves causation.

On january 15, the end of the first biweekly pay period of the year, north company’s payroll register showed that its employees earned $32,000 of sales salaries. withholdings from the employees’ salaries include fica social security taxes at the rate of 6.2%, fica medicare taxes at the rate of 1.45%, $3,000 of federal income taxes, $772 of medical insurance deductions, and $260 of union dues. no employee earned > $7,000 in this first period. prepare the journal entry to record north company’s january 15 (employee) payroll expenses and liabilities.