What Is the Fallacy of Composition

question 53

Multiple Choice

What is the fallacy of composition?

• A) the idea that correlation need not imply causation
• B) the erroneous view that an economic activity can sometimes exceed the sum of its components
• C) the view that the aggregation of economic activity will necessarily lead to an outcome that is different from the outcome generated by each individual in the group
• D) the erroneous view that what is True for the individual will also be True for the group

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Definitions:

PSD Area

A designated zone under the Prevention of Significant Deterioration program, aimed at controlling air pollution while allowing for economic growth.

Pollutants

Substances introduced into the environment that cause harm or discomfort to organisms, including chemicals, waste materials, and toxic gases.

Clean-up Cost Liability

The legal responsibility for the expenses associated with the removal and remediation of environmental pollution.

Bubble Concept

A business or economic idea that suggests a potentially unrealistically high valuation of an asset or business sector, which may lead to a burst or sudden decline.