A person observes that consumer prices often fall when a nation experiences economic growth. The person then concludes that falling consumer prices leads to economic growth. This would be an example of:
A) The fallacy of composition
B) Biases
C) Confusing correlation and causation
D) The use of loaded terminology

Question

Quizplus · Accepted Answer

The person is confusing correlation (the observation that falling consumer prices often occur during economic growth) with causation (assuming that falling consumer prices lead to economic growth). This is a common logical fallacy known as "post hoc, ergo propter hoc" or "after this, therefore because of this."

A Person Observes That Consumer Prices Often Fall When a Nation