17 Questions
Which fallacy is committed in the statement 'Hunting limits on deer help ensure a constant population. Therefore, if I only hunt to my limit, there will be sufficient deer for all'?
Ceteris paribus fallacy
Assuming that everyone trying to get a good view of a football game can also stand represents an example of which fallacy?
Fallacy of composition
Which type of fallacy involves reasoning from timing to cause and effect?
From timing to cause and effect
What is the error of reasoning that occurs when someone believes a first event causes a second event simply because the first event occurred before the second event?
The post hoc fallacy
Why would a cautious economist refrain from claiming that a stock market boom caused an economic expansion?
To avoid the post hoc fallacy, which is an error in reasoning from timing to cause and effect
In economic reasoning, which fallacy is committed when one assumes that rain started because they just finished washing their car?
Post hoc fallacy
What do most economists generally agree on regarding tariffs and import restrictions?
Tariffs and import restrictions make most people worse off
The post hoc, ergo propter hoc fallacy relates to what kind of reasoning?
The (false) statement that what is true of the parts is true of the whole or vice versa
In economics, what does 'ceteris paribus' mean?
'Other things being equal'
Which fallacy occurs when someone assumes that what is true for individual parts is also true for the whole?
The fallacy of composition
What would be an example of a normative economic statement?
'The government should implement stricter environmental regulations'
What is the fallacy of composition?
The assertion that what is true for the parts of the whole must be true for the whole.
In the scenario of a farmer increasing cows on his land and experiencing a decrease in total milk yield, what fallacy did the farmer fall prey to?
The fallacy of composition.
Why is the argument that everyone's total income in the United States has increased just because total income has increased over time considered incorrect?
The fallacy of composition.
Which statement best describes the fallacy of composition?
The (false) statement that what is true of the parts is true of the whole or what is true of the whole is true of the parts.
Which fallacy involves assuming that one event caused another simply because the first event occurred before the second?
The error of reasoning that a first event causes a second event because the first event occurred before the second event.
What is the incorrect assumption underlying the fallacy of composition?
The assertion that what is true for the parts of the whole must be true for the whole.
Study Notes
Fallacies in Economic Reasoning
- Post hoc fallacy: the error of reasoning that a first event causes a second event because the first event occurred before the second event.
- Example: a rooster thinks that the sun rises because he crows, and he is proud of it.
Ceteris Paribus
- Means "other things being equal".
- Example: "Every time I go to a basketball game, our team wins" is an example of the post hoc fallacy, not ceteris paribus.
Fallacy of Composition
- The error of reasoning that what is true of the parts is true of the whole, or what is true of the whole is true of the parts.
- Example: a farmer thinks that adding more cows to his land will increase total milk yield, but the cows overgraze and the total milk yield falls.
Other Economic Concepts
- Normative statement: a statement about the way the economic world ought to be.
- Example: "Tariffs and import restrictions make most people worse off" is a normative statement.
More Examples of Fallacies
- "Hunting limits on deer help ensure a constant population. Therefore, if I only hunt to my limit, there will be sufficient deer for all" is an example of the fallacy of composition.
- "To better see a football game, one spectator stands. Assuming that everyone trying to get a good view of the game can also stand" is an example of the fallacy of composition.
- "You are not surprised that it has started to rain. After all, an hour ago you just finished washing your car and you know it is raining because you just finished washing your car" is an example of the post hoc fallacy.
- "Because total income in the United States has increased over time, everyone's total income has increased as well" is an example of the fallacy of composition.
Test your knowledge on logical fallacies and economic concepts with this quiz. Identify errors in reasoning, expressions used in economics, and common misconceptions. Challenge yourself with questions related to causation, self interest, and normative statements.
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