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Author Question: Explain what the fallacy of composition is and give an example. What will be an ideal ... (Read 109 times)

appyboo

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on: Jun 29, 2018
Explain what the fallacy of composition is and give an example.
 
  What will be an ideal response?

Question 2

A change in a person's money income changes real income and therefore changes the slope of the person's budget line.
 
  Indicate whether the statement is true or false


Danny Ewald

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Reply #1 on: Jun 29, 2018
Answer to Question 1

The fallacy of composition is the incorrect belief that what is true for a part is necessarily true for the whole. For example, intensive fishing in an area by a boat may increase profits earned by the boat owner. However, if many boats excessively fish in the same area, the stock of fish will become depleted and all will be worse off.

Answer to Question 2

FALSE


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