Which of the following conclusions is an example of deductive reasoning?
A) Given that small firms had higher growth rates in 2017, they will likely have higher growth rates in 2018.
B) Housing prices will rise this year, as they have in the last five years.
C) If industry supply is upward sloping, quantity supplied will rise as prices increase.
D) After only observing white-colored swans, you conclude that all swans are white.

Question

Quizplus · Accepted Answer

Choice C is an example of deductive reasoning, because it presents a logical statement about the relationship between industry supply and quantity supplied based on a known economic concept. The other choices may be based on observations or trends, but they do not necessarily follow a logical deductive thought process. Additionally, choice D is an example of faulty deductive reasoning, as it relies on a limited sample size to draw a broad conclusion.

Which of the Following Conclusions Is an Example of Deductive