One Might Commit the Fallacy of Composition by Concluding That

question 86

Multiple Choice

One might commit the fallacy of composition by concluding that

• A)statements that are true during prosperity are necessarily true during depression
• B)what is good for the individual is necessarily good for the group
• C)an event that precedes another is necessarily the cause of the latter
• D)intentions need not coincide with actions
• E)the composition of a complex product is not revealed by its exterior appearance

---

Definitions:

Equilibrium Price

The market price at which the quantity of goods demanded equals the quantity supplied, leading to market stability.

Market Demand

The combined volume of a good or service that consumers in a marketplace are ready and capable of buying at assorted prices.

Marginal Cost

The funding necessary to manufacture an extra unit of a good or service.

Average Variable Cost

The total variable costs (costs that change with production volume) divided by the quantity of output produced.