The Fallacy of Composition Is the Erroneous View That

question 27

Multiple Choice

The fallacy of composition is the erroneous view that:

• A)​an increase in the supply of money will cause a general increase in the level of prices.
• B)​a small change in an economic variable will have an unrecognizable but significant effect on the economy.
• C)​when two events are associated, the one observed first must have caused the second.
• D)​if something is true for an individual, then it must also be true for a group.

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Definitions:

International Agreements

Treaties or accords reached between countries, typically involving cooperation on mutual interests or common goals.

Colonialism

The practice of acquiring full or partial control over another country, occupying it with settlers, and exploiting it economically, often associated with imperialism.

Poverty

A condition where individuals lack sufficient income or resources to achieve a minimum standard of living.

Children

Young human beings below the age of puberty or below the legal age of majority.