Which of the Following Best Illustrates the Fallacy of Composition

question 22

Multiple Choice

Which of the following best illustrates the fallacy of composition?

• A)​If I have more money, I will be better off; therefore if we all had more money, we all would be better off.
• B)​If I buy more gas each week, my gas consumption increases; therefore, if all gas consumers buy more gas each week, total gas consumption will increase.
• C)​If I spend more time studying, I will learn more; therefore, if all students spend more time studying, they will learn more.
• D)​If women's hemlines are higher this year, the Dow Jones Industrials average will fall.

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Definitions:

Sellers

Persons or organizations that provide products or services for purchase in the marketplace.

Levied

The act of imposing a tax, fee, or fine by an authority.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers.

Tax

An obligatory fiscal contribution or alternative form of taxation placed on individuals by a governing body with the aim of financing government operations and a range of public expenses.