Which of the Following Best Illustrates the Fallacy of Composition

question 7

Multiple Choice

Which of the following best illustrates the fallacy of composition?

• A) If Mr. Johnson had more money, he could afford to buy more goods.
• B) If Ms. Dawes stood up at a basketball game, she could get a better view of the game; if everyone stood up at a basketball game, everyone could have a better view of the game.
• C) If the price of bread rose, consumers would buy less; if consumers bought less bread, the price of bread would rise.
• D) High housing prices cause people to buy less housing, but an increase in income might cause them to buy more housing.

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Definitions:

Suretyship Provision

A legal agreement in which a third party agrees to be responsible for the debt or obligation of another party if that party fails to perform or pay.

Main Purpose Doctrine

A legal principle that a promise to pay the debt of another does not need to be in writing if the guarantor's main purpose benefits themselves.

Statute of Frauds

A legal principle requiring certain contracts to be in writing and signed by the party to be charged to be enforceable.

Oral Contract

An agreement between parties that is spoken, not written, but is still legally binding.