(Last Word) Which of the following has to do with the problem of distinguishing cause and effect in economic reasoning?
A) the law of large numbers
B) the law of averages
C) the post hoc, ergo propter hoc fallacy
D) the fallacy of composition

Question

Quizplus · Accepted Answer

The post hoc, ergo propter hoc fallacy refers to the faulty reasoning that concludes that because one event follows another, the first event must be the cause of the second event. This fallacy can be a problem in economic reasoning because economists must be careful to distinguish between correlation and causation when analyzing economic phenomena.

(Last Word) Which of the Following Has to Do with the Problem