The Fallacy of Composition Is Essentially the Error Of

question 99

Multiple Choice

The fallacy of composition is essentially the error of:

• A)confusing association with causation.
• B)confusing normative economics with positive economics.
• C)generalizing from the individual to the whole.
• D)omitting relevant variables from an economic model.
• E)generalizing from the whole to the individual.

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Definitions:

Journal Entry

A record in accounting that notes a specific financial transaction in a company's books, involving debits and credits to various accounts.

Elimination Entry

An accounting entry made to remove the effects of intra-company transactions when consolidating the financial statements of a parent and its subsidiaries.

Fair Value

The earnings from auctioning off an asset or the obligation incurred during a methodical marketplace exchange at the date of price setting.

Consolidated Balance Sheet

A financial statement showing the combined financial position of a parent company and its subsidiaries, presenting the assets, liabilities, and equity as if the group were a single entity.