The Fallacy of Composition Is the Incorrect View That

question 221

Multiple Choice

The fallacy of composition is the incorrect view that

• A) decisions are always made at the margin.
• B) incentives matter only to those who behave selfishly.
• C) if something is true for an individual, then it must also be true for the group.
• D) the value of a good can be objectively measured by its cost of production.

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Definitions:

Temporary Group

A group formed for a specific short-term project or objective, with a definitive endpoint after the completion of the task.

Coordination Problems

Challenges that arise in ensuring that the tasks and activities of different individuals or departments within an organization are aligned and effectively integrated.

Mutual Adjustment

A coordination mechanism where parties continuously adapt and negotiate their work and behavior with each other in order to achieve a common goal.

Liaison Roles

Positions or duties in which an individual acts as a link to facilitate communication and coordination between different parts of an organization or between organizations.