Which of the Following Statements Is False

question 33

Multiple Choice

Which of the following statements is false?

• A) For purposes of computing GDP, the purchases of new residential housing are considered investment although it is undertaken by the household sector.
• B) Consumption includes spending on durable goods but not spending on services.
• C) Investment includes fixed investment but not inventory investment.
• D) b and c
• E) a, b, and c

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Definitions:

Fallacy Of Accident

A logical error that occurs when an argument mistakenly applies a general rule to a specific case that is exceptional or atypical.

Rule Of Thumb

A practical and approximate way of doing or measuring something, based on experience rather than exact calculations.

Hasty Generalization

A logical fallacy where a conclusion is reached on the basis of insufficient evidence, generalizing too quickly from too little information.

Composition

The fallacy of inferring that a whole has a property merely because its parts have that property.