Explain and give an illustration
Explain and give an illustration of (a) the fallacy of composition; and (b) the “after this, therefore because of this” fallacy. Why are cause-and-effect relationships difficult to isolate in the social sciences?
Expert
(a) The fallacy of composition is the mistake of believing that something true for an individual part is necessarily true for the whole. Example: A single auto producer can increase its profits by lowering its price and taking business away from its competitors. But matched price cuts by all auto manufacturers will not necessarily yield higher industry profits.
(b) The “after this, therefore because of this” fallacy is incorrectly reasoning that when one event precedes another, the first even necessarily caused the second. Example: Interest rates rise, followed by an increase in the rate of inflation, leading to the erroneous conclusion that the rise in interest rates caused the inflation. Actually higher interest rates slow inflation.
Cause-and-effect relationships are difficult to isolate because “other things” are continually changing.
How can we compute operating leverage?
Use the circular flow model to confirm this assertion for the construction of a new high school in Blackhawk county?
Question Write a report on a local firm that faces Human Resource Management problems. Pick two major problems and provide solutions to it. The company selected must
I have a problem in economics on Exchange and Specialization. Please help me in getting the right answer from the following question. Sarah the wheat farmer would be most probable to trade for fruit from the Kathy's orchard if: (i) Sarah's opportunity
What do you mean by the term “United State in Global Economy”?
What are the main sources of growth?
What divergences arise between equilibrium and an efficient output spillover benefits are present? How might government correct this divergence?
Write short note Economics?
Explain Government expenditures on goods and services and transfer payments?
Describe Quasi-public goods?
18,76,764
1941287 Asked
3,689
Active Tutors
1428986
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!