One Might Commit the Fallacy of Composition by Concluding That

question 86

Multiple Choice

One might commit the fallacy of composition by concluding that

• A)statements that are true during prosperity are necessarily true during depression
• B)what is good for the individual is necessarily good for the group
• C)an event that precedes another is necessarily the cause of the latter
• D)intentions need not coincide with actions
• E)the composition of a complex product is not revealed by its exterior appearance

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Definitions:

Inefficiency

A condition where resources are not used in the most economically beneficial way, leading to wasted resources or less-than-optimal outcomes.

Communist Central Planning

An economic system where all major production decisions are made by the government, with an aim of allocating resources according to a comprehensive plan.

Entrepreneurs

Individuals who start and run businesses, taking on financial risks in the hope of profit.