Which of the Following Best Illustrates the Fallacy of Composition

question 186

Multiple Choice

Which of the following best illustrates the fallacy of composition?

• A) If the price of bread rose, consumers would buy less; if consumers bought less, the price of bread would rise.
• B) If Mr. Lewis produces more, he can consume more; if Mr. Lewis consumes more, he can produce more.
• C) If prices of houses went down, more people could afford houses; and if more people bought houses, the prices of houses would increase.
• D) If Mr. Lewis had more money, he would be wealthier; if a nation's money supply were larger, the people of the nation would be wealthier.

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Definitions:

Chardonnay

A variety of green-skinned grapes used in the production of white wine, characterized by its versatility and flavor profile.

Quiche

A savory, open-faced pastry crust filled with a mixture of eggs, milk, cheese, and sometimes meat or vegetables.

Utility Function

A mathematical representation of how choices lead to satisfaction levels for consumers, indicating preferences among various sets of goods and services.

Income

Monetary gain derived from work, investments, business, or other sources intended to fund personal expenditures.