The Fallacy of Composition Is the Incorrect View That

question 197

Multiple Choice

The fallacy of composition is the incorrect view that

• A) everything else is always held constant when a change occurs.
• B) a small change in an economic variable will have unrecognizable but significant consequences on the economy.
• C) when two events are associated, the one observed first must have caused the second.
• D) if something is true for an individual, then it must also be true for the group.

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Definitions:

Ethical Decision Making

The method of assessing and selecting between different options in a way that aligns with moral standards.

Justice

The moral principle of fairness and the administration of the law according to standards of righteousness and equity.

Efficiency

The ability to achieve a desired result without wasting materials, time, or energy.

Public Company Accounting Oversight Board

An independent oversight body responsible for supervising the audits of public companies to protect investors and the public interest.